I am retired and take educated guesses on all things financial.

July 18, 2007

July 19, 2007: A new ETF worth looking at: Claymore/Clear Global Exchanges, Brokers and Asset Managers Fund EXB

With some fanfare, Claymore has been strutting out niche ETF Funds at a steady rate to capture the remarkable cash inflow into the ETF and ETF-type industry. Although expenses seem to be inching higher, investors see these investment vehicles as transparent, tradable (sometimes not a good thing) and a good value. The internet-based marketing schemes for several upstart companies specializing in ETFs has been successful in many respects.

I maintain several ETFs in my portfolios, primarily international in scope and driven by the portfolio I see, not the fund description. I review ETFs bi-weekly for portfolio shifts. I do not day trade, as regular readers know.

EXB is an interesting global approach based on the correct assumption that the wealth of the world has expanded and will continue to expand - especially amongst the top 20% of the world's population. The portfolio's top holdings include CME Group, Franklin Resources, Deutsche Boerse, Inc., NYSE Euronext, Goldman Sachs, Merrill Lynch, Hong Kong Exchange and Clearing, Morgan Stanley, Ameriprise Financial, T Rowe Price, Legg Mason, NYMEX Holdings, Lehmann Brothers Holdings, Nomura Holdings, Amvescap, Intercontinental Exchange, Austrailian Exchange, Charles Schwab and Macquarie Bank.

While 66% of the holdings are US based, the international flavor of the total portfolio is present and an excellent bundle of quality. With the overblown mayhem over sub-prime tanking some of the aforementioned stocks, now would be a good time to consider buying this ETF.

I have pruned a few stocks from my portfolio and raised cash. EXB is a fund where I may well invest a part of the proceeds as a core holding position in my Permanent Portfolio.

We all see many ETFs come to market. Some are superb. Many are thinly traded dogs not worth your study.

I believe EXB stands an excellent chance of being a winner. for details on this fund.

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