Tuesday, 1 September 2009

Infrastructure Fund: Claymore Global Infrastructure ETF (TSX: CIF): Review Analysis and Details

We all know the benefits of ETF's or Exchange Traded Funds, and if you can find a good ETF on the Infrastructure Sector, then you can benefit from the growth of Infrastructure in a particular country. Infrastructure opens up loads and loads of horizons for an investor to invest his money. Infrastructure Sector by making an Investment in Infrastructure ETF is one of the easily available option to benefit from Infrastructure investment. In this article, we will focus on one of the Infrastructure Exchange Traded Funds.Infrastructure Fund

What is the Claymore Global Infrastructure ETF?
Claymore Global Infrastructure ETF is a kind of Exchange Traded fund which focuses on the Infrastructure Sector. This fund is aiming to replicate the performance of the underlying Infrastructure Index called the MFC Global Infrastructure Index. The investment by the Claymore Global Infrastructure ETF Fund will be to invest the investors money into Constituent Securities of the Index.

MFC employs a proprietary quantitative multi-factor bottom-up selection process to select and weight the top companies involved in the infrastructure sector generally within the following industry segments:
The option for investments are huge - The list includes:
• Airport Services
• Highways & Railtracks
• Multi-Utilities
• Marine Ports & Services
• Gas Utilities
• Oil & Gas Storage & Transportation
• Construction & Engineering
• Electric Utilities
• Heavy Electrical Equipment
• Water Utilities

and basically everything that can be categorized as infrastructure.


What is the underlying index for Claymore Global Infrastructure ETF?
The Claymore Global Infrastructure ETF will track the underlying index called the MFC Global Infrastructure Index.
This Index has the following characteristics:

Number of Securities 60
Weighted Average Market Capitalization ($Billion) $13.95
Weighted Average Price/Earnings 9.5 times
Weighted Average Price/Book 1.6 times
Dividend Yield 3.93%

Fund Data for Claymore Global Infrastructure ETF:
Ticker Symbols TSX: CIF
Advisor Class Units TSX: CIF.A
Initial Unit Price $20.00
Income Distribution Canadian & Foreign Dividend Income
Distribution Frequency Quarterly
CUSIP Symbols Common Units 18383B112
Advisor Class Units 18383B104
Management Fee 0.65%

Recent performance of Real Estate Funds Index:
Historical Performance of Infrastructure Funds
What are the benefits of investing in a Real Estate ETF?
There are many benefits of investing in a Real Estate ETF like the Claymore Global Infrastructure ETF:

- You can get exposure to Infrastructure sector with limited capital without actually buying properties worth millions
- You can stay in Canada, but can benefit from the price rise in US Infrastructure if you buy a Infrastructure Fund which has good exposure to US Infrastructure
- You can also opt for a global fund like Claymore Global Infrastructure ETF, and benefit from overseas property market exposure.
- You dont have to get into the hassles of taking a loan from benefitting from Infrastructure sector. You can bet with small amount of money also

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