The Claymore/Zacks Sector Rotation ETF (Ticker: XRO) seeks investment results that correspond generally to the performance, before fees and expenses, of the Zacks Sector Rotation Index. The index sector allocation methodology strives to overweight cyclical sectors prior to anticipated periods of economic expansion and overweight non-cyclical sectors prior to anticipated periods of economic contraction. The objective of the index is to overweight those sectors that combined have the potential to outperform on a risk-adjusted basis the S&P 500 Index and other benchmark indices. The sectors consist of Consumer Staples, Consumer Discretionary, Retail/Wholesale, Medical, Auto/Tires/Trucks, Basic Materials, Industrial Products,
Construction, Multi-Sector Conglomerates, Computer/ Technology, Aerospace, Oils/ Energy, Finance, Utilities, Transportation and Business
Services. Exposure for any one sector may range from 0% to a maximum of 45% percent of the index. Within each sector, stocks are selected based on liquidity. Individual stock exposure will be determined by relative market capitalization within the sector. No individual stock may consist of more than 5% of the total index.