Claymore Launches Global Water ETF

May 16, 2007

SAN DIEGO (ETFguide.com) - Claymore Advisors has introduced the Claymore S&P Global Water Index ETF (AMEX: CGW) on the American Stock Exchange.

The underlying index consists of 50 companies and provides an even mix of stocks from two important segments of the water industry; water utilities and water

equipment/materials.

The expense ratio is 0.65 percent and the fund has underlying call/put options.

Worldwide demand for water is growing at twice the rate of the population, according to the World Resources Institute.

Additionally, many developing countries with polluted water sources are investing capital to improve and modernize their water supply infrastructure. The obvious

beneficiaries of all this spending are companies that manufacture the water equipment, materials, and technology.

The Claymore Water ETF will compete head-to-head with the PowerShares Water Portfolio (AMEX: PHO).

As of mid-May the PowerShares Water ETF notched an even 6 percent year-to-date gain with roughly $1.6 billion in assets.

Exposure to U.S. stocks is roughly 28 percent of the S&P Global Water Index, with international stocks making up the remaining bulk majority of market exposure.

In contrast, the Palisades Water Index which PowerShares tracks is more domestically focused, with just 15 percent exposure to foreign stocks.

Companies included in the S&P Global Water Index have market capitalizations ranging from $250 million to $25 billion and the index is rebalanced annually.

The top three holdings in the Claymore ETF are Veolia Environment, Suez, and Mitsubishi Heavy Industries.

"Research has identified the global need for clean water, creating an equally global, emerging opportunity for investment,” said Christian Magoon, Senior Managing

Director at Claymore Securities.

He added, “Unlike other water-related investment products, the Claymore ETF provides liquid exposure to the leading publicly listed companies from developed

markets in the global water industry."