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.
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.