Claymore to launch Morningstar ETFs

Morningstar Inc. has announced that Claymore Securities Inc. has licensed three Morningstar Super Sector Indexes to create three new exchange traded funds. Lisle, Ill.-based Claymore said that it filed a registration statement with the Securities and Exchange Commission today, making the funds the first to track the Morningstar Super Sector Indexes. The indexes divide the U.S. equity universe into one of three broad super sectors: manufacturing, services, and information. The Morningstar Sector Index family consists of 15 indexes—three Super Sector Indexes and 12 Sector Indexes—that track 97% of the U.S. equity market by market capitalization. Companies are assigned to sectors based on their primary source of revenues. "Investors recognize that sector diversification is important, but the sheer number of sectors makes it difficult for them to track and allocate their holdings evenly across industries," said Christian Magoon, senior managing director at Claymore, according to a statement. "Our new ETFs based on the Morningstar Super Sector Indexes allow investors the opportunity to gain broader sector exposure or the potential to add balance to a concentrated portfolio." "Just looking at super sectors or subsectors can be a bit overwhelming," said Arijit Dutta, research analyst at Morningstar's index group. "These three super sectors produced meaningful differences in performance that can be exploited." Morningstar is based in Chicago.