Home of the Firsts
Since its founding in January 2005, Claymore’s leadership in the investment industry has produced the following innovations in exchange-traded funds:
Exchange-Traded Funds
RISK CONSIDERATIONS
There can be no assurance that the Funds will achieve their investment objectives. An investment in the various Claymore ETFs is subject to certain risks and other considerations. Below are some general risks and considerations associated with investing in an ETF. Please refer to the individual ETF prospectus for a more detailed discussion of the Fund-specific risks and considerations.
An investment in the Units will be subject to certain risk factors, including: (i) there can be no assurance that the Funds will be able to achieve their distribution or total return objectives; (ii) the NAV per Unit and the funds available for distribution will vary according to, among other things, the value of the securities in the Portfolios and the distributions paid thereon; (iii) the risk of inefficient asset allocation in the Portfolios; (iv) the financial performance of the Portfolios and market and economic conditions affecting the equity, fixed income and income trust markets; (v) risks relating to investments in equity securities; (vi) risks relating to fixed income investments; (vii) the fact that income trusts depend on the financial performance of the related operating entity and may also be subject to general risks associated with various economic factors, that investments in real estate investment trusts are subject to general risks associated with real property investments and that investments in oil and gas royalty trusts are subject to risks associated with fluctuations in commodity prices; (viii) reliance on the Manager, the Investment Advisor and key portfolio managers; (ix) risks relating to the use of leverage; (x)sensitivity to interest rates; (xi) the possibility that the Funds will be unable to acquire or dispose of illiquid securities; (xii) risks relating to the use of derivative instruments; (xiii) counterparty risks associated with securities lending; (xiv) the Units may trade in the market at a premium or a discount to the NAV per Unit and there can be no guarantee that Units will trade at prices that reflect their net asset value; (xv) as the Funds are not mutual funds as defined under Canadian securities laws, the Funds are not subject to the policies and regulations of the Canadian securities regulators that apply to open-end mutual funds; (xvi) potential conflicts of interest; (xvii) changes in legislation; (xviii) tax proposals and administrative positions of the Canada Revenue Agency regarding deductibility of interest; (xix) the Funds’ lack of operating history and the current absence of a public trading market for the Units; (xx) the fact that the Funds are not a trust company and the Units are not insured deposits; and (xxi) the fact that Units are neither fixed-income nor equity securities, and Unit holders will not have certain rights associated with investments in such securities; (xxii) for each Fund’s applicable index —the Mergent’s Canadian Dividend & Income Achievers Index, the FTSE RAFI Developed ex 1000 Index, the FTSE RAFI Japan Canadian Dollar Hedge Index, the S&P Global Water Index, the Sustainable Oil Sands Sector IndexTM, or the BNY BRIC Select ADR Index Risk of Error—the risk of error in replicating the index, calculation and termination of the index, index investment strategy risk (xxiii) tracking error risk; (xxiv) rebalancing and adjustment risk; (xxv) royalty regime; (xxvi) securities lending risk; (xxvii) trading price of units; (xxviii) potential conflicts of interest; (xxix) cease trading of constituent securities; (xxx) environmental regulations (xxxi) absence of an active market for the units; (xxxii) lack of operating history; (xxxiii) changes in dividend policies; (xxxiv) foreign investment risk; (xxxv) commodity price fluctuations; (xxxvi) cost overruns.