Claymore Broad Commodity ETF (TSX:CBR) closed its initial offering of units and began trading on the Toronto Stock Exchange on Wednesday, Claymore Investments, Inc. reports.

The new exchange traded fund seeks investment results that correspond generally to the total return (before fees and expenses) of the Auspice Broad Commodity Total Return Index, which is designed to benefit from upward trends in the broad commodity futures markets while at the same time minimizing downside risk during downtrends.

“Commodities have proven to become an important asset class for diversifying portfolio risks and returns. Their historically low correlation to stocks and bonds, along with their high correlation to inflation, makes commodities even more important in today’s market environment” says Som Seif, President & CEO of Toronto-based Claymore Investments, Inc.

“This product is Canada’s first broad commodity ETF, and brings an intelligent investment strategy to the commodity market while also hedging the currency exposure,” Seif says.

IE