Claymore/Robb Report Global Luxury (NYSE:ROB)
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Claymore Securities, Inc. today launched the Claymore/Robb Report Global
Luxury Index ETF (NYSE:ROB) on the New York Stock Exchange. The new ETF
tracks an index that is designed to capture the opportunity created by
companies whose primary business is the provision of global luxury goods
and services.
According to the World Wealth Report 2007 issued by CapGemini and
Merrill Lynch, the number of millionaires in the world has doubled in
the past 10 years. According to research conducted by CurtCo Robb Media,
LLC, analysts anticipate that because of the continued growth and
considerable disposable income of these HNWIs, luxury goods and services
companies will continue to enjoy greater pricing power, creating
margin-expansion opportunities and fueling further profit growth.
According to Telsey Advisory Group, a leading independent equity
research and consulting firm, the $150 billion global luxury goods
market is projected to grow 6-7% annually over the next five years.
“The Robb Report has defined luxury for over
30 years,” says Christian Magoon, Senior
Managing Director, and head of the ETF Group for Claymore Securities,
Inc. “We believe this Index represents some of
the finest luxury brands, goods and services in the world and with the
introduction of the Claymore/Robb Report Global Luxury Index ETF,
investors can now access the global luxury market in an efficient and
transparent ETF. Our partnership with CurtCo Robb Media, LLC continues
the tradition of access to innovation that we feel distinguishes
Claymore ETFs from other ETF providers.”
“The emergence of luxury goods and services is
an important and growing sector in the global economy,”
said Bill Curtis, Chief Executive Officer of CurtCo Robb Media, LLC,
which owns Robb Report and a stable of other leading magazine
brands catering to high-net worth consumers. “Our
index is the first global index of its kind and we see it as a natural
brand extension, one that underscores Robb Report as the preeminent
brand in the global luxury goods and services marketplace and a critical
link between the companies that sell such products and the consumers who
buy them.”
The Claymore/Robb Report Global Luxury Index ETF (NYSE:ROB) seeks
investment results that correspond generally to the performance, before
the Fund’s fees and expenses, of an equity
index called the Robb Report Global Luxury Index (the “Index”).
The Index is comprised of no fewer than 20 and up to 100 equity
securities traded on major global developed market exchanges, as well as
American depositary receipts (“ADRs”)
and global depositary receipts (“GDRs”)
of companies whose primary business is the provision of global luxury
goods and services. These may include retailers, manufacturers (which
may include automobiles, boats, aircraft, and consumer electronics),
travel and leisure firms, and investment and other professional services
firms. The designation of such firms as “luxury”
is determined by the publisher of the Robb Report magazine,
CurtCo Robb Media, LLC (the “Robb Report”
or the “Index Provider”).
All stocks in the Robb Report Global Luxury Index are selected from the
global investable universe of companies whose primary business is the
provision of global luxury global goods and services, as determined by
the Index Provider. The index constituents are weighted using a modified
market cap weighting methodology, and the index rebalances annually.
About Claymore Securities
Claymore Securities, Inc. is a privately-held financial services company
offering unique investment solutions for financial advisors and their
valued clients. As of June 30, 2007, Claymore entities have provided
supervision, management, servicing or distribution on more than $17
billion in assets through closed-end funds, unit investment trusts,
mutual funds, and exchange-traded funds. Claymore Advisors, LLC, an
affiliate of Claymore Securities, serves as investment adviser to the
Claymore ETFs.
About CurtCo Robb Media LLC
CurtCo Robb Media LLC is the Index provider. CurtCo Media, an affiliate
of CurtCo Robb Media LLC, serves the ultra-luxury market with a network
of leading lifestyle publications, including Robb Report, an acclaimed
journal of connoisseurship, as well as Worth, ShowBoats International,
Art & Antiques, The Robb Report Collection, Robb Report Luxury Home,
Robb Report Vacation Homes, Robb Report MotorCycling, Robb Report Home
Entertainment, Robb Report Luxury Resorts, Robb Report Luxury Hotels,
Robb Report Russia, Robb Report Sports & Luxury Automobile, San Diego,
Gulfshore Life, and Sarasota magazines. New publications in 2007 include
Robb Report Vertical Living and The Robb Report Watch Collector.
Risks and Considerations
Investors should consider the following risk factors and special
considerations associated with investing in the Fund, which may cause
you to lose money.
Investment Risk: an investment in the Fund is
subject to investment risk, including the possible loss of the entire
principal amount that you invest.
Equity Risk: A principal risk of investing in the Fund is
equity risk, which is the risk that the value of the securities held by
the Fund will fall due to general market and economic conditions,
perceptions regarding the industries in which the issuers of securities
held by the Fund participate, or factors relating to specific companies
in which the Fund invests. For example, an adverse event, such as an
unfavorable earnings report, may depress the value of equity securities
of an issuer held by the Fund; the price of common stock of an issuer
may be particularly sensitive to general movements in the stock market;
or a drop in the stock market may depress the price of most or all of
the common stocks and other equity securities held by the Fund. In
addition, common stock of an issuer in the Fund’s
portfolio may decline in price if the issuer fails to make anticipated
dividend payments because, among other reasons, the issuer of the
security experiences a decline in its financial condition. Common stock
is subordinated to preferred stocks, bonds and other debt instruments in
a company’s capital structure, in terms of
priority to corporate income, and therefore will be subject to greater
dividend risk than preferred stocks or debt instruments of such issuers.
In addition, while broad market measures of common stocks have
historically generated higher average returns than fixed income
securities, common stocks have also experienced significantly more
volatility in those returns.
Luxury Risk: The success of companies that sell luxury
goods and services may depend heavily on the disposable household income
and consumer spending of a relatively small segment of the general
population, rather than the consumer population as a whole. Changes in
consumer taste among such segment of the population can also affect the
demand for, and success of, luxury goods and services in the
marketplace. Consumer spending on luxury goods and services can also be
adversely affected as a result of declines in consumer confidence
levels, even if prevailing economic conditions are favorable. In an
economic downturn, consumer discretionary spending levels generally
decline, often resulting in disproportionately large reductions in the
sale of luxury goods and services.
Foreign Investment Risk: The Fund’s
investments in non-U.S. issuers may involve unique risks compared to
investing in securities of U.S. issuers, including, among others,
greater market volatility than U.S. securities and less complete
financial information than for U.S. issuers. In addition, adverse
political, economic or social developments could undermine the value of
the Fund’s investments or prevent the Fund
from realizing the full value of its investments. Financial reporting
standards for companies based in foreign markets differ from those in
the United States. Finally, the value of the currency of the country in
which the Fund has invested could decline relative to the value of the
U.S. dollar, which may affect the value of the investment to U.S.
investors. In addition, the underlying issuers of certain depositary
receipts, particularly unsponsored or unregistered depositary receipts,
are under no obligation to distribute shareholder communications to the
holders of such receipts, or to pass through to them any voting rights
with respect to the deposited securities.
Non-Correlation Risk: The Fund’s
return may not match the return of the Index for a number of reasons.
For example, the Fund incurs a number of operating expenses not
applicable to the Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Index.
The Fund may not be fully invested at times, either as a result of cash
flows into the Fund or reserves of cash held by the Fund to meet
redemptions and expenses. If the Fund utilizes a sampling approach or
futures or other derivative positions, its return may not correlate as
well with the return on the Index, as would be the case if it purchased
all of the stocks in the Index with the same weightings as the Index.
Small and Medium-Sized Company Risk: Investing in
securities of small and medium-sized companies involves greater risk
than is customarily associated with investing in more established
companies. These companies’ stocks may be
more volatile and less liquid than those of more established companies.
These stocks may have returns that vary, sometimes significantly, from
the overall stock market.
Replication Management Risk: Unlike many investment
companies, the Fund is not “actively”
managed. Therefore, it would not necessarily sell a stock because the
stock’s issuer was in financial trouble
unless that stock is removed from the Index.
Issuer-Specific Change: The value of an individual
security or particular type of security can be more volatile than the
market as a whole and can perform differently from the value of the
market as a whole. The value of securities of smaller issuers can be
more volatile than that of larger issuers.
Non-Diversified Fund Risk: The Fund is considered
non-diversified and can invest a greater portion of assets in securities
of individual issuers than a diversified fund. As a result, changes in
the market value of a single investment could cause greater fluctuations
in share price than would occur in a diversified fund.
In addition to the risks described above, there are certain other
risks related to investing in ETFs. These risks, as well as additional
risks specific to a particular ETF, are described further in each ETF’s
respective prospectus. Please read the prospectus for more detailed
information
Claymore ETFs are listed on the AMEX or the NYSE, depending on the ETF
listing, the same way as shares of a publicly-traded company. This
Claymore ETF is listed on the NYSE. Claymore ETFs can be purchased
through most brokerage accounts. They can be bought and sold throughout
the day on the AMEX or the NYSE, depending on the ETF listing, during
normal trading hours.
The Fund issues and redeems Shares at NAV only in large blocks of
200,000 Shares (each block of 200,000 Shares called a “Creation
Unit”) or multiples thereof. As a practical
matter, only broker-dealers or large institutional investors with
creation and redemption agreements and called Authorized Participants (“APs”)
can purchase or redeem these Creation Units.
The investors buying or selling ETF shares on the secondary market may
incur brokerage costs and other transactional fees. Shares of ETFs may
fluctuate in price due to daily changes in trading volume. At times,
shares may not have a high volume of trading. Except when
aggregated in Creation Units, Shares are not redeemable securities of
the Funds.
Deliveries of Fund securities to redeeming investors generally will be
made within three business days. Due to the schedule of holidays in
certain countries, however, the delivery of in-kind redemption proceeds
may take longer than three business days after the day on which the
redemption request is received in proper form. In such cases, the local
market settlement procedures will not commence until the end of the
local holiday periods. See the Fund’s SAI for
a list of the local holidays in the foreign countries relevant to the
Fund.
The Claymore/Robb Report Global Luxury Index ETF and its Shares are not
sponsored, endorsed, sold or promoted by CurtCo Robb Media, LLC, Robb
Report Magazine and its affiliates (“Licensor”).
Licensor makes no representation or warranty, express or implied, to the
shareholders of the Fund or any member of the public regarding the
advisability of investing in or trading securities generally or in the
Fund particularly or the ability of the Robb Report Global Luxury Index
to track general stock market performance. Licensor’s
only relationship to the Investment Adviser is the licensing of certain
trademarks and trade names of Licensor and of the Robb Report Global
Luxury Index, which is determined, composed and calculated solely by
Licensor without regard to Investment Adviser or the Claymore/Robb
Report Global Luxury Index ETF. Licensor has no obligation to take the
needs of the Investment Adviser or the shareholders of the Fund into
consideration in determining, composing or calculating the Robb Report
Global Luxury Index. Licensor is not responsible for and has not
participated in the determination of the prices of the Shares of the
Fund or the timing of the issuance or sale of such Shares or in the
determination or calculation of the equation by which the Shares are to
be converted into cash. Licensor has no obligation or liability in
connection with the administration, marketing, or trading of the Fund or
its Shares.
Investors should consider the investment objectives and policies,
risk considerations, charges and ongoing expenses of the ETFs carefully
before they invest. The prospectus contains this and other
information relevant to an investment in the ETFs. Please read
the prospectus carefully before you invest or send money.
For more information, please contact a securities representative or
Claymore Securities, Inc., 630-463-4000. www.claymore.com/etfs.
NOT FDIC - INSURED - NOT BANK - GUARANTEED - MAY LOSE VALUE
Claymore Securities, Inc. - 2455 Corporate West Drive - Lisle, Illinois
60532
1-800-345-7999 - www.claymore.com
Member NASD/SIPC 07/07
Claymore Securities, Inc.
Member NASD/SIPC 07/07