Exchange traded fund (
announced that it's closing down one of its most popular funds,
Claymore/Delta Global Shipping (NYSEArca:
. But don't fear - the market may not be without a shipping ETF for
long. Find out why and what's next for the provider after the
After Claymore was acquired by
last October, there was a change in control of the funds Claymore
managed. Claymore Managing Director Bill Belden explained that
under the 40 Act rules, a change in control means going to proxy
shareholders and getting approval for that change for all ETFs and
closed-end funds (CEFs). [
Read More About the Claymore/Guggenheim Deal.
Belden says all funds received approval, with the exception of
SEA, "Despite our strenuous efforts to get that vote."
With that, Claymore closed the fund yesterday and is liquidating
now with proceeds going to the fund's shareholders. Normally, when
an ETF closes, there's an announcement followed by a period of a
few weeks before trading ceases and liquidation begins. In this
instance, that wasn't possible because although the provider
preferred to do a more deliberate unwinding of SEA, Claymore was no
longer authorized by the SEC to serve as the investment advisor to
the product. [
The ETF Closing Process.
But investors who want exposure to the shipping sector may not
have long to wait.
As SEA ceased trading and liquidation began, Claymore filed with
the SEC to launch a new shipping ETF that's largely similar to SEA.
The fund's name will change to
Claymore Shipping (
. It will track the same index - the
Delta Global Shipping Index
and carry a 0.65% expense ratio. [
Top ETFs to Play Growing Industrial Activity.
"We're working with the SEC to see that the time out of the
market is kept to a minimum," Belden says.
No doubt investors will be eager to add SEA back into their
portfolios once the new fund launches. SEA closed with about $131
million in assets and was one of the year's top performers, up
22.4% since January. It launched in September 2008 and is a unique
way for ETF investors to get exposure to the shipping sector. [
5 ETFs Beating the S&P 500.
SEA is also a unique way to get exposure to the global economic
recovery. Newly-crowned middle class residents of emerging markets
are buying more goods while exporting countries like China are
heavily utilizing shipping to import raw goods and export finished
For more stories about the shipping sector,
visit our shipping category
Read the disclaimer
; Tom Lydon is a board member of Rydex|SGI, which is owned by