Claymore unveils dividend-rotation ETF

The Claymore/Zacks Dividend Rotation ETF will follow the Zacks Dividend Rotation Index from Zacks Investment Research Inc.
OCT 24, 2007
Claymore Securities Inc. of Lisle, Ill. today announced the launch of its dividend rotation exchange traded fund, the Claymore/Zacks Dividend Rotation ETF. “We believe that a dividend rotation investment strategy can offer a variety of benefits to investors,” Christian Magoon, senior managing director at Claymore, and head of the firm’s ETF Group said in a statement. “Those benefits may include favorable dividend tax treatment, the possibility of cushioning the impact of losses in stocks during down markets, and offering a potential boost in total return when stocks gain ground.” The Claymore/Zacks Dividend Rotation ETF will follow the Zacks Dividend Rotation Index from Zacks Investment Research Inc. of Chicago. The index seeks to maximize dividend income that qualifies for taxation at the lowest current tax rates known as qualified dividend income by selecting dividend-paying stocks based on Zacks’ quantitative methodology. The index, at the time of each rebalance, is designed to eliminate companies that have recently paid a dividend and include those companies that are expected to pay dividends while seeking to maximize QDI potential. It seeks to select a group of stocks with the potential to outperform, on a risk adjusted basis, the Dow Jones US Select Dividend Index and other benchmark indexes.

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