Comments on: Claymore Broad Emerging Markets ETF (TSX: CWO)

By: New iShares Emerging Market and World ETFs | Canadian Capitalist

New iShares Emerging Market and World ETFs | Canadian Capitalist — Thu, 25 Jun 2009 15:46:26 +0000

[...] XEM is 0.82%, which includes EEM’s MER of 0.72%. XEM has plenty of Canadian competition now: the Claymore Emerging Markets ETF (CWO, MER of 0.65%) and the soon-to-be launched BMO Emerging Markets ETF (MER of 0.535%). The Vanguard Emerging Markets [...]

By: Claymore responds to questions on CWO | Canadian Capitalist

Claymore responds to questions on CWO | Canadian Capitalist — Wed, 03 Jun 2009 13:31:03 +0000

[...] 3rd, 2009 · I passed along reader questions received in an earlier post on Claymore Broad Emerging Markets ETF (CWO) to Som Seif, President of Claymore Investments. Here’s his [...]

By: Gail Bebee

Gail Bebee — Wed, 13 May 2009 16:10:20 +0000

If the US dollar declines relative to the currencies of the countries in the emerging markets ETFs, wouldn’t the companies in the ETF benefit from this fact? The value of the companies relative to the US dollar would likely increase and hence the value of the relevant ETF. I don’t worry too much about hedging Vanguard non-US ETFs.

By: Remus

Remus — Tue, 12 May 2009 16:13:37 +0000

CC can you please shed some more light on this statement you made “that will be of interest to Canadians worried about estate tax implications of holding cheaper US-based emerging market ETFs such as the Vanguard Emerging Markets ETF (VWO). ”
What exactly you mean estate tax implications? If you keep them in a non registered account doesn’t this behave like any other US security? I thought there was only a withholding tax on dividends paid by these shares but other than that?

thanks

By: Canadian Capitalist

Canadian Capitalist — Wed, 08 Apr 2009 16:55:21 +0000

Charles: Perhaps a copy-paste job… we developers are very familiar with that concept

Claymore replied that they’ll get the error fixed up.

By: Canadian Capitalist

Canadian Capitalist — Wed, 08 Apr 2009 16:22:38 +0000

alvanson: Oops, sorry I misunderstood your comment. I do recall now that CBQ hedges the CAD/USD fluctuation, which I thought was dubious and in fact, blogged about it before. I’ll see if Claymore has answers to these questions.

http://www.canadiancapitalist.com/2008/05/13/reader-question-on-eem-versus-cbq

By: alvanson

alvanson — Wed, 08 Apr 2009 15:30:27 +0000

CC: That’s exactly what SHOULD happen (reread my comment). But for CBQ, they just hedge the CAD/USD fluctuations which doesn’t make any sense.

By: Canadian Capitalist

Canadian Capitalist — Wed, 08 Apr 2009 14:59:39 +0000

EconStudent: I haven’t looked at the prospectus yet but like Charles says, it could be temporary until they get it up and running?

Charles: That’s funny! I’ll let Claymore know that they should correct it.

alvanson: Even though VWO is denominated in US dollars, for Canadian investors this is what happens:

VWO prices incorporate Emerging market currency/USD fluctuations
Canadian investors in VWO experience USD/CAD fluctuations
The USD fluctuations above cancel out leaving Canadian investors with Emerging market currency/CAD fluctuation.

CWO would be hedging the Emerging market currency / CAD fluctuation because it is pointless to hedge the USD/CAD fluctuation.

Ranger: I’m cautious on BRICs as I explained in this post:

http://www.canadiancapitalist.com/2008/08/24/do-brics-belong-in-your-portfolio

By: CanadianMoneyBlogger

CanadianMoneyBlogger — Wed, 08 Apr 2009 05:47:16 +0000

I noted a little while ago that the MER for VWO has actually bounced around a bit, from the 0.30% in 2006, down to 0.25% in 2007, and now back up a bit to 0.27%. It still quite low compared to other comparative ETFs though.

By: Ranger

Ranger — Wed, 08 Apr 2009 05:27:49 +0000

How would you compare CWO to CBQ. I’m a big fan of the BRIC and wonder if just holding CBQ is enough. You did not mention the DRIP factor for these funds…comments?