ETN/ETF Launch: Tracking Closed-End Funds (GCE)

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By Douglas A. McIntyre Published
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NYSE Euronext has launched an unusual ETN.  The Claymore CEF Index-Linked GS ConnectSM ETN (NYSE: GCE) began trading on the NYSE today.  This is not a typical ETF (or actually an exchange traded notes offering) because this one tracks an index that is comprised of Closed-End funds.

Linked to the Claymore CEF Index, this ETN provides investors with an opportunity to track a portfolio of liquid Closed End Funds listed in the U.S.  The NYSE also has not demanded exclusivity here on this one.  Out of the current 75 constituents, 68 are listed with NYSE Group.

As a reminder, closed-end funds are much older than ETF’s.  They also trade intraday just like an ETF or like a stock rather than an open-ended "five letter ticker" mutual fund.  What is different is that closed-end funds trade at a premium or discount to the net asset values, so that is one more added feature to take into consideration.

Jon C. Ogg
December 10, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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