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Sudan-free ETF offered

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By Darla Mercado

July 9, 2007 9:31 am ET

NEW YORK — Claymore Securities Inc. of Lisle, Ill., has launched the Claymore/KLD Sudan Free Large-Cap Core ETF, the first exchange traded fund based on a Sudan-free index.

Following the KLD Large Cap Sudan Free Social Index, the fund answers investors’ requests for investment options that eschew involvement with Sudan’s regime and the genocide in Darfur. Public-pension funds and institutional money managers have been the driving force behind Sudan-free investment, but smaller investors in the retail market are catching on.

“We are seeing increased demand from individuals and the retail market for investment products that allow individual investors to avoid companies involved in Sudan,” said Darragh Gallant, marketing and client services director at Boston’s KLD Research and Analytics Inc.

The KLD Large Cap Sudan Free Social Index screens for companies that own assets in Sudan, have employees or facilities there, or obtain goods and services from there, plus several other conditions. Constituent stocks must have a market capitalization in excess of $1 billion and be part of the Russell 1000 Index. Among those included are AT&T Inc., Microsoft Corp. and Bank of America Corp.

The Claymore/KLD Sudan Free Large-Cap Core ETF will invest at least 90% of its total assets in common stock and American depositary receipts within the index. It is listed on the American Stock Exchange under the ticker KSF.

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