Claymore BRIC ETF (Symbol-CBQ)

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oldguy
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Claymore BRIC ETF (Symbol-CBQ)

Post by oldguy »

As I was looking for ETF's in Canadian dollars for International markets I noticed the Claymore Funds. More specifically CBQ-T (BRIC).

I've never heard of these guys before. My concern is not with my own trading errors but with the validity of trading with an unknown company.

Is it safe to invest with this kind of company ?
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Post by like_to_retire »

unknown company
Where have you been oldguy?

I just did a quick search and got 45 matches on this site for Claymore alone. I'm sure there's a ton more with specific symbols.

The members here have owned and have been discussing Claymore funds since early 2006.

ltr
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Post by oldguy »

like_to_retire wrote:
unknown company
Where have you been oldguy?

The members here have owned and have been discussing Claymore funds since early 2006.

ltr
:oops: :oops: :oops: Sorry , I guess I had no interest at the time.

Thanks

Nevertheless , this question was asked months ago and no one ever replied , Anyone care to comment ?

What happens if ETF or fund issuer/custodian goes bankrupt?

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CBQ

Post by lystgl »

I'm a little confused. ("understatement" I'm sure comes to mind to many of you) CBQ lists EEB (BRIC) in their top ten holdings yet I'm of the understanding that CBQ is supposed to be the Canadian version of EEB? What is one ETF doing with another ETF in its' top ten holdings?

Name Weighting
CHINA MOBILE (HONG KONG) LTD ADR 9.51 %
PETROLEO BRASILEIRO ADR(PREF) 8.69 %
PETROL BRASILEIRO 7.34 %
CIA VALE DO RIO DOCE ADR(PREF) 7.19 %
CLAYMORE/BNY BRIC ETF 6.92 %
CIA VALE DO RIO DOCE ADR(COMMON) 5.43 %
CHINA LIFE INSURANCE CO-ADR 4.98 %
PETROCHINA COMPANY LTD ADR 4.66 %
BANCO BRADESCO SA ADR 4.26 %
CHINA PETROLEUM & CHEMICAL ADR 3.30 %
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Post by pitz »

Can't think of a good reason for the concentration to be that high -- sometimes index funds will hold units of ETFs or index futures/options as 'dividend soakers', but 7% is clearly excessive.

Of course, Claymore would be collecting fees on both the ETF itself, and the ETF held within the ETF.

Don't know why anyone would buy this product.
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Post by lystgl »

pitz wrote: Don't know why anyone would buy this product.
It's China, India, Brazil, Russia - all the big growth areas although it seems to be weighted more towards Brazil rather than China/Russia.

I don't see why they didn't simply clone EEB for the Great White? The way they've got it now, you've got a "doubling up" effect. Then again, maybe you're right, this way they get paid for the same fund twice?
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Post by Norbert Schlenker »

Page 17 of the prospectus for CBQ promises no double dip on the fees. CBQ probably holds EEB for the simple reason that it lowers overall transaction costs.
Nothing can protect people who want to buy the Brooklyn Bridge.
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Post by pitz »

lystgl wrote: It's China, India, Brazil, Russia - all the big growth areas although it seems to be weighted more towards Brazil rather than China/Russia.
Sounds very similar to EEM/VWO; what exactly is gained by excluding Taiwan/Korea/Singapore and parts of Eastern Europe from the mix?
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Post by arthur »

CBQ has substantially outperformed both EEM and VWO.
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Post by arthur »

Brazil showing really strong gains today, CBQ could be a rocket.
You want the truth, you want the truth, you can't handle the truth.

The masses have never thirsted for the truth, whoever supplies them with illusions is their master, whoever supplies them with the truth, their victim.

If you do not risk anything , you risk even more. Jong
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Post by Arby »

pitz wrote:... Of course, Claymore would be collecting fees on both the ETF itself, and the ETF held within the ETF.

Don't know why anyone would buy this product.
As Norbert pointed out upthread, Pitz's statement is incorrect about Claymore double dipping on management fees. It is fairly common for a fund to hold other funds from the same company within a particular fund's portfolio. I know that PH&N does it, and PH&N also states in their prospectus that they do not double dip on management fees.
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Post by lystgl »

I still don't understand why they'd hold everything twice? Everything that CBQ has, EEB does too so you've got 6.9% more of everything simply because, they - what - got lazy and "filled up" the rest with the same? That's like buying a bunch of mutual funds from different Co.'s thinking you're diversified when, in reality, all the funds have pretty much the same stocks in them and you're not diversified at all.
?
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Post by arthur »

lystgl, call them and ask and share info here, that is what this site is about.

I have called 3 company IR people this week and shared info at stock site.
You want the truth, you want the truth, you can't handle the truth.

The masses have never thirsted for the truth, whoever supplies them with illusions is their master, whoever supplies them with the truth, their victim.

If you do not risk anything , you risk even more. Jong
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Post by Norbert Schlenker »

lystgl wrote:I still don't understand why they'd hold everything twice? Everything that CBQ has, EEB does too so you've got 6.9% more of everything simply because, they - what - got lazy and "filled up" the rest with the same? That's like buying a bunch of mutual funds from different Co.'s thinking you're diversified when, in reality, all the funds have pretty much the same stocks in them and you're not diversified at all.
?
No, it's not like that. CBQ has about $170mm in assets so the EEB position is worth about $10mm. The smallest position in the portfolio list is 0.06% of the total which means, if one rules out the EEB position, that CBQ would have an obligation to own about another $6000 worth of that particular stock. With commissions and bid-ask spreads, such a purchase might actually not be worthwhile.

I'm no big fan of Claymore. IMO their fees are too high and they are pandering to the worst instincts of investors with their product offerings. But there's nothing nefarious here.
Nothing can protect people who want to buy the Brooklyn Bridge.
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Claymore BRIC etf

Post by retireat50 »

As the name suggests, this ETF tracks indices of Brazil, Russia, India and China. Up 35% last year so it might not be the best time to gain an entry point. Anyone own this, or planning to buy some?
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Post by fundy48 »

Bought 2000 of Claymore BRIC Jan 3, 07

It has been quite volatile, but wish I had bought more of it. My only sad, I bought it in a Wood Gundy acct with a fee of $600, that was before I had my RBC Direct Invest account.
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Post by gummy »

CBQ is my favourite stock.
Though it's up and down, I like the volatility.
For example, I bought and sold several times just before and after the Fed Rate cut and enjoyed the wild (and profitable) ride.
It doesn't trade much (average daily volume 50K), so strange and wonderful things can happen.
On March 18, it was trading at $36 and I had an offer to buy at $35.
Some poor fella had a market order to sell, there was little trading at the time and the stock dropped and I got it for $35.
It immediately jumped back to $36+ and I sold at $36.30 within the hour.

Also, I like the idea of investing in countries (as opposed to companies).
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Post by oldguy »

RUSSIA…THEFT OF COMPANIES BY BUREAUCRATS…WHAT IS HAPPENING IN RUSSIA IS NOT GOOD FOR INVESTORS.

WE ARE CONCERNED THAT INVESTORS MAY HAVE THEIR ASSETS STOLEN BY WELL ORGANIZED GOVERNMENT BUREAUCRATS. WE PLAN TO SELL OUR SMALL REMAINING POSITIONS IN RUSSIA ON RALLIES.

Please note the following excerpt from a letter written on April 3, 2008 to shareholders of the Hermitage Fund, a large mutual fund investing in Russian stocks.

It now appears that the Moscow Interior Ministry officials whom we named in our criminal complaints are retaliating by coming up with new spurious claims and inaccurate press leaks. We are confident that in any proper hearing all of these accusations will be thrown out.

While this story of official corruption may sound completely unbelievable, it is unfortunately not unusual in modern Russia. The theft of companies via these tactics (office raids, forgery, false contracts, fraudulent court judgments, attachment orders) has become so common that those who perpetrate these frauds are now known in the Russian vernacular as simply “raiders.” Every day small businessmen, landowners and even large Russian companies are the targets of raiders, and the problem has become so endemic that President Medvedev specifically referred to it in a speech in February this year, calling for “real instruments to prevent raider activity.”

After reading this, you can see why we have abandoned our bullish outlook on Russian investments
Here
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Post by AltaRed »

The writing was on the wall when Russia first squeezed Shell on Sakhalin followed by BP's interests and most recently ExxonMobil's Sakhalin interests (denial of a gas pipeline). If the Ruskies are willing to take on the big guys, imagine what it means for everyone else.

Some similar, but more subtle and less newsworthy, squeezes are happening in a few other CIS countries too, e.g. oil interests in Kazakhstan. One needs a strong stomach to be in Russia (and China) in particular. It is only a matter of time before the Chinese squeeze Western interests.
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Post by gummy »

I was wondering how the CBQ price movement compares to the collection of stocks that it represents ... so I collected the biggest components here.
Fascinating.

I also have spreadsheet that downloads all them thar prices (with a click of a button) and applies a bunch of weights (according to Claymore) and gives y'all what CBQ should be worth.
Image

That, too, is fascinating. :lol: :lol:
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Post by retireat50 »

I've been watching this the past few months and it's been relatively stable in price which I do not understand. Both China and India indices are down 30%+ since start of the year. Shouldn't CBQ also have fallen by a large amount or has the Russia and Brazil increases offset the plunge in China/India? I am waiting for a nice drop to get into this ETF as I have 0 exposure to BRIC at the moment.
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Post by squash500 »

retireat50 wrote: I've been watching this the past few months and it's been relatively stable in price which I do not understand.

IMHO, cbq has not been stable in price over the last month. ytd of cbq is -13.24% as of july2/08. In the last 30 days, cbq is down -15.06%. The price has dropped even furthur down today. It is around 35.80 at time of posting. Like everything else lately, Cbq is on its way down. Just my opinion :) .
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Post by arthur »

How can CBQ be off almost almost 2% when all the exchanges that comprise it are closed and are up almost 2%, CBQ would not seem to reflect what it purports??? :?
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Post by adrian2 »

arthur wrote:CBQ would not seem to reflect what it purports???
This is how ETF's work -- while the US markets are open, US-listed ETF's anticipate future moves in the share constituents in overseas stocks.

There are many arbitrageurs who keep the CBQ price honest (witness the small bid-ask spread). If you think you know better than them, they'll be more than happy to take the other side of your trades.
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Post by RichieRich »

CBQ was paying quarterly in 2007. Why nothing in 2008?
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