Is there such a thing as “open season” for exchange traded fund(ETF) providers?
Last Friday, Claymore Securities announced that they had reached a deal with Guggenheim. The deal would allow Guggenheim to acquire the ETF providers’ lineup. Hannah Glover for Ignites reports that the deal is anticipated to close by the end of the third quarter, however, the terms and requirements are top secret.
Analysts believe that Guggenheim was attracted to Claymore’s ETF lineup, since the ETF industry has so much growth potential. In June, ETFs had $590.3 billion in assets, according to the ICI. Claymore’s 34 ETFs represented about $1.7 billion at the end of June.
Firms on the acquisition end of the business spectrum are likely to seek these investment products more frequently.
Analysts believe that consolidation among ETF providers is going to take place more frequently, as the industry has become top-heavy. Three providers represent more than 77% of the total market share.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.