By seadmin

Look, up in the sky! It’s a bird, it’s a plane, no, it’s Super Sector funds!

Sorry, but my pop-culture literacy wouldn’t let me avoid the obvious Superman reference here when introducing the newest ETFs from Claymore Securities.

These new ETFs are called Super Sector funds, a name that Claymore came up with for its joint venture with mutual fund-rating service Morningstar.

These Super Sector ETFs are constructed by collecting stocks from Morningstar’s 12 sector classifications (energy, materials, industrials, healthcare, etc). The stocks then are aggregated into one of the three Super Sectors which are: Manufacturing, Services, and Information.

The indexes are market-cap weighted and rebalanced on a quarterly basis. Expenses in these funds are very attractive, with each boasting a low 0.4% expense ratio. The three Super Sector funds are listed as follows:

Claymore/Morningstar Information Super Sector (MZN)
Claymore/Morningstar Services Super Sector (MZO)
Claymore/Morningstar Manufacturing Super Sector (MZG)

My friend Tom Lydon did a nice write up on each of these funds in his (ETF Trends) service. Below is his description of each new Super Sector fund.

Claymore/Morningstar Information Super Sector (MZN)

"This ETF tracks the Morningstar Information Super sector Index that is designed to identify and follow companies that support and facilitate the exchange of ideas and information as a basis for commerce. Examples of these industries include software, hardware, media and telecommunication sectors."

Claymore/Morningstar Services Super Sector (MZO)

"MZO tracks the Morningstar Services Super Sector Index that is designed to identify and follow companies whose main source of revenue comes from providing services. Eligible companies for this index include the health care services, consumer services, business services and financial services sectors."

Claymore/Morningstar Manufacturing Super Sector (MZG)

"This ETF tracks the Morningstar Manufacturing Super Sector Index that is designed to identify and follow companies in ‘smokestack’ industries that process raw materials into physical goods that are sold into industrial and consumer markets. Companies that could be included in this index include consumer goods, industrial materials, energy and utility sectors."

Thanks for the great descriptions, Tom. I know that I will be watching these Super Sector funds for signs of super performance once this market gets over its selling flu.

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