Exchange traded funds (ETFs) run the gamut, from your plain vanilla offerings to your esoteric funds tracking obscure indexes. One fund in particular that’s trading these days is a member of the latter class.
The Claymore/Ocean Tomo Patent ETF (NYSEArca: OTP) is a fund that is interesting in theory and may hold promise in the future. Everyday Finance reports on Seeking Alpha that OTP focuses on companies that hold “quality” portfolios of patents, which in turn, translate into higher earnings than peer companies and broad market indices as a whole.
Many of the top holdings in the fund are top-notch tech companies such as Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG), so the argument is still out on whether the fund is performing because of market performance or the heavy lean toward tech. The fund is up 47% in the last year, and 6.7% year-to-date.
The fund breaks down into technology, 36.5%; health care, 20.4%; and energy, 12.7%. OTP launched on Dec. 15, 2006, and has a 0.60% expense ratio.
To read profiles of various ETFs, visit our ETF Spotlight page.
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.