Claymore Securities, the Lisle, Illinois-based financial services firm that offers 35 ETFs covering a variety of sectors and asset classes, announced the effectiveness of changes to its Great Companies Large-Cap Growth Index (XGC). The fund will now be known as the Claymore/BNY Mellon International Small Cap LDRs ETF, and it will track the Bank of New York Mellon Small Cap Select ADR Index. This benchmark provides exposure to international small-cap equities (excluding Canada). “We believe this change expands our product offering into an opportune space for long-term growth oriented investors: international small cap companies,” noted Christian Magoon, President of Claymore Securities.
In connection with the adjustment of the ETF’s name and investment objective, Claymore will also reduce the expense ratio from 0.65% to 0.45%, a move likely designed to attract additional investors to the fund. Despite gaining more than 25% year-to-date, the Great Companies fund had struggled to attract sufficient assets, recently with a market cap of only about $4.0 million.The move is somewhat unusual, but Claymore is so stranger to firsts in the ETF industry. Among the issuer’s many accomplishments are the first solar energy ETF, the first U.S.-listed BRIC ETF, and the first global timber ETF.
Disclosure: No positions at time of writing.