Claymore Securities, acquired by Guggenheim Partners in October, has filed plans with the Securities and Exchange Commission (SEC) to convert two bond exchange traded funds (ETFs) into actively managed ETFs.

Claymore will change two index-based bond ETFs into actively managed portfolios and switch their names to reflect the new owner, says Olivier Ludwig for Index Universe.

The two affected funds are:

  • The Claymore U.S. Capital Markets Bond ETF (NYSEArca: UBD) will become the Guggenheim Enhanced Core Bond ETF. It will trade on the NYSE using the symbol “GIY” and seek to beat the so-called BarCap index;
  • The Claymore U.S. Capital Markets Micro-Term Fixed Income ETF (NYSEArca: ULQ), which will become the Guggenheim Enhanced Ultra-Short Bond ETF. It will trade on the NYSE with the ticker “GSY,” and be managed with the aim of beating the short-term Treasuries index.

Both ETFs will have caps on annual expense ratios of 0.27% of assets under management, the same as the current versions of the funds. [New Providers, New Active ETFs.]

Shishir Nigram for Active ETFs reports that Claymore’s switch is a first in the industry, though this isn’t the first conversion we’ve seen. Providers of other fund structures – such as mutual funds – have proposed converting them into actively managed ETFs. [Mutual Fund to ETF Conversions: What You Should Know.]

For more stories about new ETFs, visit our new ETFs category.

Tisha Guerrero contributed to this article.

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.

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