Claymore Investments, Inc. is launching of Claymore Premium Money Market ETF, which began trading today on the Toronto Stock Exchange.

Claymore says the new ETF is the first money market ETF in North America and seeks to provide current income and liquidity consistent with short-term money market rates while preserving the value of investors initial investment.

The fund invests primarily in high-quality, short-term (generally 90 days or less) debt securities, including treasury bills and promissory notes issued or guaranteed by Canadian governments or their agencies, bankers acceptances and commercial paper (excluding asset-backed commercial paper) issued by Canadian banks, loan companies, trust companies and corporations.

“We think this ETF will meet the needs of Canadian investors by bringing a low cost way to manage their cash positions. Money Market interest rates today are low, and by offering a low MER of only 0.25%, which is dramatically lower compared to other money market funds in Canada, we are able to reduce the risk the portfolio needs to take to provide attractive interest rates on cash to investors,” says Som Seif, president & CEO of Claymore Investments, Inc.

Like most of Claymore Investments’ other current ETFs, Claymore Premium Money Market ETF will be offering two classes of units, the common unit (CMR) and advisor class unit (CMR.A).