Claymore Launches First Global Airline ETF (NYSE Arca: FAA).First ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). to Seek to Provide Investors Access to Some of the Most Actively Traded Global Passenger Airline Companies LISLE, Ill. -- Claymore Securities, Inc. today announced the launch of the Claymore/NYSE Arca Airline ETF (NYSE Arca For other uses of "ARCA", see ARCA. NYSE Arca, previously known as ArcaEx, an abbreviation of Archipelago Exchange, is an entirely online securities exchange on which both stocks and options are traded. : FAA) on the NYSE Arca, Inc. ("NYSE Arca"). FAA is the first airline ETF that seeks to provide investors with a cost-efficient means of accessing the heavily-traded global airline industry. "Passenger airlines make up the vital networks by which the world connects itself, and we are happy to be the first ETF provider to offer investors access to a portfolio of some of the most actively traded global passenger airline stocks," said Christian Magoon, President of Claymore Securities, Inc. "FAA is an industry first and yet another example of the innovation and insight Claymore strives to deliver to the marketplace." The ETF will seek to replicate the NYSE Arca Global Airline Index (AXGAL) (the "Index"), an index that tracks the performance of selected securities of passenger airlines from around the world. At each rebalance, the Index is approximately 70% US passenger airline companies, with the remaining weight allocated to international passenger airline companies. The companies included in the Index must derive at least 50% of their revenue from passenger airline operations. Additionally, constituents must have a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of at least $100 million and a 100-day average daily trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. of at least $1 million. As of December 31, 2008, the top five Index constituents were AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. Corp (AMR), Continental Airlines Inc (CAL), Southwest Airlines This article is about the American airline. For the former Japanese airline, see Japan Transocean Air. For the British airline, see Air Southwest. Southwest Airlines Co. Co (LUV LUV Light Utility Vehicle LUV Love LUV Southwest Airlines (NYSE stock symbol) LUV Linux Users of Victoria LUV Love Ur Voice (band) LUV Luxury Utility Vehicle ), JetBlue Airways For the Jet Blue database used in Exchange Server and Active Directory, see Extensible Storage Engine. JetBlue Airways is a major American low-cost airline owned by JetBlue Airways Corporation (NASDAQ: JBLU). Corp (JBLU JBLU JetBlue Airways Corporation (stock symbol) ) and Delta Airlines Inc (DAL). FAA is listed on the NYSE Arca and trades the same way as shares of a publicly-traded company. FAA can be purchased through most brokerage accounts. Fund shares can be bought and sold throughout the day on the NYSE Arca during normal trading hours. The Fund issues and redeems shares at NAV See navigation system and navigation bar. only in large blocks of 50,000 of Shares (each block of shares is called a "Creation Unit") or multiples thereof. Only broker-dealers or large institutional investors with creation and redemption agreements and called Authorized Participants ("APs") can purchase or redeem these Creation Units. Please see www.claymore.com/faa and the Fund's prospectus for more information. Investors buying or selling ETF shares on the secondary market may incur brokerage costs and other transactional fees. Shares of ETFs will fluctuate in price due to daily changes in trading volume. At times, shares may not have a high volume of trading. Except when aggregated in Creation Units, Shares are not redeemable securities of the Fund. About Claymore Securities Claymore Securities, Inc. is a privately-held financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company offering unique investment solutions for financial advisors and their valued clients. Claymore currently offers exchange-traded funds, unit investment trusts and closed-end funds. Claymore Advisors, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , an affiliate of Claymore Securities, Inc., serves as investment adviser to the Fund. About Archipelago Holdings Inc. Archipelago Holdings Inc. is an affiliate of the NYSE Euronext, Inc. (NYX Noun 1. Nyx - (Greek mythology) Greek goddess of the night; daughter of Chaos; counterpart of Roman Nox Greek mythology - the mythology of the ancient Greeks ). NYX is the world's leading, most liquid and diverse exchange group. It offers a broad and growing array of financial products and services in cash equities, futures, options, exchange-traded products, bonds, market data, and commercial technology solutions, all designed to meet the evolving needs of issuers, investors and financial institutions. Spanning multiple asset classes and six countries, NYSE NYSE See: New York Stock Exchange Euronext's exchanges include the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , Liffe, Euronext and NYSE Arca. With more than 6,500 listed issues, more than any other exchange group, trading on NYSE Euronext's equity markets represents more than one-third of the world's cash equities volume. NYSE Euronext also manages the leading European derivatives exchange by value of trading. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit www.nyx.com. Risk Considerations There can be no assurance that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of the entire principal amount you invest. Airline industry companies may be adversely affected by a downturn in economic conditions that can result in decreased demand for air travel. Industry revenues are heavily influenced by the condition of the U.S. economy and world economies. Airline companies may also be significantly affected by changes in fuel prices, which may be very volatile. Airline companies may not be able to pass on increased fuel prices to customers by increasing fares. The airline industry may also be significantly affected by changes in labor relations and insurance costs. Future government decisions could adversely affect companies in the airline industry. Investing in non-U.S. issuers may involve unique risks such as currency, political, and economic risk, as well as less market liquidity, generally greater market volatility and less complete financial information than for U.S. issuers. Investment in securities of issuers based in developing or "emerging market" countries entails all of the risks of investing in securities of non-U.S. issuers, as previously described, but to a heightened degree. Investing in securities of small- or medium-sized companies involves greater risk as these securities may be more volatile and less liquid than those of larger or more established companies and may have returns that vary, sometimes significantly, from the overall stock market. Additional risks of the Fund include but are not limited to: Non-Correlation Risk, Replication Management Risk, Issuer-Specific Changes and Non-Diversified Fund Risk. "NYSE Arca Global Airline Index(SM)" is a service mark of the NYSE Group, Inc. ("NYSE") and Archipelago Holdings, Inc. ("Archipelago") and has been licensed for use by Claymore Advisors, LLC. The Fund is not sponsored, endorsed, sold or promoted by NYSE or Archipelago. Neither NYSE nor Archipelago makes any representation or warranty regarding the Fund or the ability of the NYSE Arca Global Airline Index to track general stock market performance. Neither NYSE nor Archipelago makes any express or implied warranties, and herby expressly disclaims all warranties of merchantability mer·chant·a·ble adj. Suitable for buying and selling; marketable. mer chant·a·bil or fitness for a particular purpose with respect to the
NYSE Arca Global Airline Index or any data included therein. In no event
shall NYSE or Archipelago have any liability for any special, punitive,
indirect, or consequential damages Injury or harm that does not ensue directly and immediately from the act of a party, but only from some of the results of such act, and that is compensable by a monetary award after a judgment has been rendered in a lawsuit. (including lost profits), even if
notified of the possibility of such damages.
Investors should consider the investment objectives and policies, risk considerations, charges and ongoing expenses of the ETF carefully before they invest. The prospectus contains this and other information relevant to an investment in the ETF. Please read the prospectus carefully before you invest or send money. For this and more information, please contact a securities representative or Claymore Securities, Inc. |
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