Claymore Investments has announced the launch of the Claymore Short Duration High Income ETF. The goal of the ETF is to maximize total returns, consisting of both tax efficient monthly distributions and capital appreciation, and to preserve capital.
“We continue to believe that good income products are critical for Canadian investors,” said Som Seif, president and CEO of Claymore Investments.
“Interest rates remain very low, and this causes a major dilemma: it is hard to obtain high yield without buying long dated bonds, but given the low rates, interest rates are likely to rise over the coming several years, which will not be good for longer dated bond prices.”
Distributions from the ETF are intended to be tax efficient when compared to units of a trust that depends solely on interest, dividend and/or other investment income to pay for distributions.