SEA Change: Overnight Fund Closure Highlights Risk to ETFs From Change in Ownership
Wednesday, April 28th, 2010Ron Rowland submits:
With no apparent warning, Claymore announced yesterday (4/27/10) that the Claymore/Delta Global Shipping Index ETF (former ticker SEA) would be immediately delisted and liquidated. According to the press release, this action was a result of not having reached a shareholder quorum to approve a new advisory agreement. A new advisory agreement between the ETF and its sponsor is required because of the recent acquisition of Claymore by Guggenheim Partners.
SEA is the only Claymore ETF affected, and Claymore has already filed for a new ETF with the same objective and ticker symbol. Claymore will no doubt do everything within its power to get the new Claymore Shipping ETF (anticipated ticker SEA) listed as soon as possible. According to the summary page for the closing fund, it has assets of more than $152 million.
