Claymore Securities Launches China All-Cap ETF (NYSE Arca: YAO)

October 19, 2009 9:30 AM EDT

YAO -- the Newest Addition to a Growing Suite of China-Focused ETFs

LISLE, Ill.--(BUSINESS WIRE)-- Claymore Securities, Inc., today announced the launch of the Claymore/AlphaShares China All-Cap ETF (NYSE Arca: YAO) on the NYSE Arca, Inc. ("NYSE Arca"). YAO is Claymore's third China-focused ETF joining the ranks of Claymore's existing China-based ETFs - the Claymore/AlphaShares China Small Cap Index ETF (NYSE Arca: HAO), the first ETF to focus on Chinese small-cap companies, and the Claymore/AlphaShares China Real Estate ETF (NYSE Arca: TAO), the first ETF to focus on Chinese real estate companies.

"Since the launch of TAO in 2007, Claymore has been committed to providing comprehensive access and products for the Chinese markets. Where our earlier products have given investors the opportunity for portfolio diversification, YAO offers direct exposure to China's broader stock market," said Christian Magoon, President of Claymore Securities,Inc.

"With Chinese banks remaining in good condition and lending growing rapidly1, this is the ideal time for investors to access the country's market through an all-cap product like YAO. We are excited to be able to grow our Chinese offerings and grant broader access to U.S. investors," he continued.

Chief Investment Officer of AlphaShares and well known Princeton University economist, Dr. Burton G. Malkiel also noted, "China is the leading driver of global GDP growth today and will soon pass Japan to become the second largest economy in the world. However, most investors have less than 2% of their portfolio invested in China. Claymore's YAO is a valuable addition to their growing suite of products designed to provide investors with this much needed exposure."

China continues to grow in importance to the world as it re-emerges as a world leader. Over the past 20 years China's growth, as measured by GDP, accelerated relative to world output, allowing China to become a larger percentage of global GDP.2 This, combined with projections that China will continue outpace many developed and emerging market countries' GDP growth in 2009 and 2010 is causing many investors to rethink whether they are appropriately allocated to China within their investment portfolio3.

YAO will seek to replicate the AlphaShares China All Cap Index (Index Ticker: ACNAC) (the "Index"), an index that seeks to measure and monitor the performance of the investable universe of publicly-traded companies based in mainland China of all capitalizations. The companies included in the Index must have a float-adjusted market capitalization initially of $500 million or greater and $400 million or greater for ongoing inclusion in the Index.. The Index utilizes a modified market capitalization weighting methodology. As of September 30, 2009 the Index included 99 securities from all capitalizations with approximately 57% in large caps, 33% in mid caps and 10% in small caps based on free-float adjusted market capitalizations. For more information on YAO please visit www.claymore.com/yao.

About Claymore Securities

Claymore Securities, Inc. is a privately-held financial services company offering unique investment solutions for financial advisors and their valued clients. Claymore entities have provided supervision, management, and/or servicing on approximately $11.3 billion in assets, as of June 30, 2009. Claymore currently offers closed-end funds, unit investment trusts and exchange-traded funds. Additional information on Claymore's exchange-traded funds is available by calling 888.WHY.ETFS (888.949.3837) or visiting www.claymore.com/ETFs. Registered investment products are sold by prospectus only and investors should read the prospectus carefully before investing.

About AlphaShares

AlphaShares, LLC is an investment management firm dedicated to providing investors with strategies and products to participate in China's fast growing economy. AlphaShares investment philosophy and strategies are based on the beliefs and research of co-founder and Chief Investment Officer, Dr. Burton G. Malkiel. The AlphaShares team has over 100 years of experience with firms including, Barclays Global Investors, BARRA, Renaissance Technologies, Robertson Stephens & Company and The Vanguard Group.

Risk Considerations

Investors should consider the following risk factors and special considerations associated with investing in the Fund, which may cause you to lose money, including the entire principal amount that you invest. Equity Risk: The risk that the value of the securities held by the Fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the Fund invests. Foreign Investment Risk: Investing in non-U.S. issuers may involve unique risks such as currency, political, and economic risk, as well as less market liquidity, generally greater market volatility and less complete financial information than for U.S. issuers. Investment in securities of issuers based in developing or "emerging market" countries entails all of the risks of investing in securities of non-U.S. issuers, as previously described, but to a heightened degree. China Investment Risk: Investing in securities of Chinese companies involves additional risks, including, but not limited to: the economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others; the central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership; and actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. In addition, previously the Chinese government has from time to time taken actions that influence the prices at which certain goods may be sold, encourage companies to invest or concentrate in particular industries, induce mergers between companies in certain industries and induce private companies to publicly offer their securities to increase or continue the rate of economic growth, control the rate of inflation or otherwise regulate economic expansion. From time to time, certain of the companies comprising the Index that are located in China may operate in, or have dealings with, countries subject to sanctions or embargoes imposed by the U.S. government and the United Nations and/or in countries identified by the U.S. government as state sponsors of terrorism. Micro-, Small- and Medium-Sized Company Risk: Investing in securities of these companies involves greater risk as their stocks may be more volatile and less liquid than investing in more established companies. These stocks may have returns that vary, sometimes significantly, from the overall stock market. Micro-cap companies may be newly formed, less developed and there may be less available information about the company. In addition, the Fund is subject to: Non-Correlation Risk, Replication Management Risk, Issuer-Specific Changes, and Non-Diversified Fund Risk. Please read the Fund's prospectus for more detailed information on these risks and considerations.

The Fund is not sponsored, endorsed, sold or promoted by AlphaShares, LLC ("Licensor"). Licensor makes no representation or warranty, express or implied, regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the AlphaShares China All Cap Index ("Index") to track general market performance. Licensor's only relationship to Claymore Advisors, LLC ("Licensee") is the licensing of the Index which is determined, composed and calculated by Licensor without regard to Licensee or the Fund. Licensor has no obligation to take the needs of the Licensee or the shareholders of the Fund into consideration in determining, composing or calculating the Index. Licensor shall not be liable to any person for any error in the Index nor shall it be under any obligation to advise any person of any error therein.

Investors should consider the investment objectives and policies, risk considerations, charges and ongoing expenses of the ETFs carefully before they invest. The prospectus contains this and other information relevant to an investment in the ETFs. Please read the prospectus carefully before you invest or send money. For this and more information, please contact a securities representative or Claymore Securities, Inc.

NOT FDIC - INSURED -- NOT BANK - GUARANTEED -- MAY LOSE VALUE

Claymore Securities, Inc. -- 2455 Corporate West Drive -- Lisle, Illinois 60532

1-888-949-3837 -- www.claymore.com

Member FINRA/SIPC 10/09

1 The People's Bank of China, Monetary Policy Committee Held its First Quarterly Meeting in 2009, April 12, 2009.

2 Angus Maddison, The World Economy Historical Statistics. Adjusted for purchasing power parity.

3 World Economic Outlook Update (October 2009

    Source: Claymore Securities, Inc.

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