Announced taday the launch of the Claymore/NYSE Arca Airline ETF …
Claymore Securities, Inc. today announced the launch of the Claymore/NYSE Arca Airline ETF (NYSE Arca: FAA) on the NYSE Arca, Inc. (“NYSE Arca”). FAA is the first airline ETF that seeks to provide investors with a cost-efficient means of accessing the heavily-traded global airline industry.
“Passenger airlines make up the vital networks by which the world connects itself, and we are happy to be the first ETF provider to offer investors access to a portfolio of some of the most actively traded global passenger airline stocks,” said Christian Magoon, President of Claymore Securities, Inc. “FAA is an industry first and yet another example of the innovation and insight Claymore strives to deliver to the marketplace.”
The ETF will seek to replicate the NYSE Arca Global Airline Index (AXGAL) (the “Index”), an index that tracks the performance of selected securities of passenger airlines from around the world. At each rebalance, the Index is approximately 70% US passenger airline companies, with the remaining weight allocated to international passenger airline companies. The companies included in the Index must derive at least 50% of their revenue from passenger airline operations.
Additionally, constituents must have a market capitalization of at least $100 million and a 100- day average daily trading volume of at least $1 million. As of December 31, 2008, the top five Index constituents were AMR Corp (AMR), Continental Airlines Inc (CAL), Southwest Airlines Co (LUV), JetBlue Airways Corp (JBLU) and Delta Airlines Inc (DAL).
FAA is listed on the NYSE Arca and trades the same way as shares of a publicly-traded company. FAA can be purchased through most brokerage accounts. Fund shares can be bought and sold throughout the day on the NYSE Arca during normal trading hours. The Fund issues and redeems shares at NAV only in large blocks of 50,000 of Shares (each block of shares is called a “Creation Unit”) or multiples thereof. Only broker-dealers or large institutional investors with creation and redemption agreements and called Authorized Participants (“APs”) can purchase or redeem these Creation Units.
Source: ETFWorld.co.uk – Claymore