Claymore Boots 11 ETFs

Could the move signal an industry shakeout?


Zac Bissonnette of BloggingStocks says Claymore's axing of nearly a third of its exchange traded fund lineup may be a sign of a "coming shakeout" in the ETF industry. But Murray Coleman over at Index Universe calls the Claymore liquidation a "big yawner." Writes Coleman:

This isn't the start of's the continuation of a young industry trying to find an equilibrium between giving people what they want and making a profit. It's easy to pick on individual players for calling it quits. But look at what Claymore did...they took a hard look at a combination of weak asset levels and lousy relative performance.

Claymore's flops—nearly all of which are less than a year old—include Claymore/KLD Sudan Free Large-Cap Core, Claymore/Robeco Developed World Equity, and Claymore/Clear Global Vaccine. At the end of February, the firm is terminating 11 ETFs, which account for 1.7 percent, or $30 million of its total assets under management. But don't cry for Claymore: The firm plans to roll out eight to 14 new products by the end of the year.