Claymore/BNY Mellon Frontier Markets ETF (FRN)

The Claymore/BNY Mellon Frontier Markets ETF (FRN) started trading in mid June 2008. The ETF tracks the Bank of New York Mellon New Frontier DR Index, minus expenses and fees. FRN takes a replication approach to tracking the index, attempting to own all of the index's components. At times, however, the fund may use a sampling approach to track the index, and may hold futures or other derivatives.

The Bank of New York Mellon New Frontier DR Index measures the performance of American Depository Receipts and Global Depository Receipts of frontier market nations, which trade on the AMEX, LSE, NASDAQ, and NYSE exchanges.

As of July 2008, the index had the follow sector breakdown:

Basic materials 14.85%
Consumer cyclical 0.89%
Consumer staples 4.68%
Energy 10.55%
Financials 39.42%
Industrials 6.87%
Telecommunication 14.68%
Utilities 8.07%

The ETF is passively managed, with an expense ratio of 0.65%. The expense ratio is capped at 0.65% until the end of 2010, after which it may be higher.

As of August 2008, the Claymore/BNY Mellon Frontier Markets ETF held 48 stocks with the following nation breakdown:

Poland 23.64 %
Chile 20.36 %
Egypt 17.63 %
Kazakhstan 7.67 %
Peru 5.47 %
Lebanon 3.37 %
Nigeria 3.24 %
Czech 3.24 %
Kuwait 3.03 %
Pakistan 3.01 %
Oman 2.28 %
Colombia 2.02 %
Ukraine 1.90 %
Bahrain 1.42 %
United Arab Emerites 0.89 %
Georgia 0.61 %
Estonia 0.22 %

The Claymore/BNY Mellon Frontier Markets ETF's holdings, as of August 2008, are listed below.