Claymore/Zacks Yield Hog ETF (CVY)

The Claymore/Zacks Yield Hog ETF (CVY) started trading in late September 2006. It tracks the Claymore Zacks Yield Hog Index minus expenses and fees. The ETF seeks to use a sampling approach to track the index although it reserves the right to use a replication approach. That is, the ETF does not, as a general rule, own every index component, but from time to time it may.

The index is distributed over the following asset classes:


Dividend paying common stocks: 50%
Closed end funds: 10% max
MLPs: 25% max
ADRs, preferred stocks, REITs: 20% max

Note that closed end funds may include bond funds.



As of July 2008, the ETF holds 147 positions. This includes common stocks, REITs, closed end funds, MLPs, and preferred stocks. The sector breakdown and weightings are as follows:

Basic Materials 7.30%
Communication Technology 2.58%
Consumer Discretionary 6.81%
Consumer Staples 4.95%
Energy 19.31%
Financials 28.83%
Health Care 4.84%
Industrials 4.81%
Information Technology 1.02%
Utilities 8.09%


The ETF employs a passive approach and has an expense ratio of 0.79%. As of March 2008, the average market cap of its holdings was $18.9 billion. The annual portfolio turnover rate was 21%.

Although this is subject to change, it pays dividends on a quarterly basis, at the end of March, June, September, and December. The dividend is irregular, and past distributions have ranged from $0.315 a share to $0.367 a share. As the ETF holds REITs, MLPs, preferred stocks, and closed end funds, beware for tax purposes that its distributions include regular income, short term and long term capital gains in addition to qualified dividends. As it owns ADRs, a portion of its dividends may be withheld by foreign tax authorities.

The ETF's holdings, as of July 2008, are listed below.