-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PEZiDBvjsROrn31X0bcj8RrNX26AK3rNCE/Rlg/1rm1p03KLiGP7b4KkgB1suskJ R5ef0o5zRUw/6U9n6y0OpQ== 0000891804-10-000642.txt : 20100208 0000891804-10-000642.hdr.sgml : 20100208 20100208102326 ACCESSION NUMBER: 0000891804-10-000642 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20091130 FILED AS OF DATE: 20100208 DATE AS OF CHANGE: 20100208 EFFECTIVENESS DATE: 20100208 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Claymore Exchange-Traded Fund Trust 2 CENTRAL INDEX KEY: 0001365662 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21910 FILM NUMBER: 10579128 BUSINESS ADDRESS: STREET 1: C/O CLAYMORE SECURITIES, INC. STREET 2: 2455 CORPORATE WEST DRIVE CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 630-505-3700 MAIL ADDRESS: STREET 1: C/O CLAYMORE SECURITIES, INC. STREET 2: 2455 CORPORATE WEST DRIVE CITY: LISLE STATE: IL ZIP: 60532 0001365662 S000017280 Claymore/SWM Canadian Energy Income Index ETF C000047825 Claymore/SWM Canadian Energy Income Index ETF ENY 0001365662 S000017281 Claymore/Zacks Country Rotation ETF C000047826 Claymore/Zacks Country Rotation ETF CRO 0001365662 S000017282 Claymore/Zacks International Multi-Asset Income Index ETF C000047827 Claymore/Zacks International Multi-Asset Income Index ETF HGI 0001365662 S000017283 Claymore/Clear Global Exchanges, Brokers & Asset Managers Index ETF C000047828 Claymore/Clear Global Exchanges, Brokers & Asset Managers Index ETF EXB 0001365662 S000018388 Claymore/Robb Report Global Luxury Index ETF C000050853 Claymore/Robb Report Global Luxury Index ETF ROB 0001365662 S000019498 Claymore/Clear Global Timber Index ETF C000054146 Claymore/Clear Global Timber Index ETF CUT 0001365662 S000019626 Claymore/Alphashares China Real Estate ETF C000054711 Claymore/Alphashares China Real Estate ETF TAO 0001365662 S000020486 Claymore/Alphashares China Small Cap ETF C000057433 Claymore/Alphashares China Small Cap ETF HAO 0001365662 S000022470 Claymore/BNY Mellon Frontier Markets ETF C000065012 Claymore/BNY Mellon Frontier Markets ETF FRN 0001365662 S000023409 Claymore/Delta Global Shipping Index ETF C000068628 Claymore/Delta Global Shipping Index ETF SEA N-CSRS 1 clay47923-ncsrs.txt CLAYMORE ETF TRUST 2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21910 --------------------- Claymore Exchange-Traded Fund Trust 2 ------------------------------------------------------------------- (Exact name of registrant as specified in charter) 2455 Corporate West Drive, Lisle, IL 60532 ------------------------------------------------------------------- (Address of principal executive offices) (Zip code) J. Thomas Futrell, 2455 Corporate West Drive, Lisle, IL 60532 ------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (630) 505-3700 --------------- Date of fiscal year end: May 31 ---------- Date of reporting period: November 30, 2009 ------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. The registrant's semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the "Investment Company Act"), is as follows: SEMIANNUAL REPORT November 30, 2009 CLAYMORE EXCHANGE-TRADED FUND TRUST 2 (Unaudited) LOGO CLAYMORE ETFs Access to Innovation TAO | CLAYMORE/ALPHASHARES CHINA REAL ESTATE ETF HAO | CLAYMORE/ALPHASHARES CHINA SMALL CAP INDEX ETF EXB | CLAYMORE/BEACON GLOBAL EXCHANGES, BROKERS & ASSET MANAGERS INDEX ETF CUT | CLAYMORE/BEACON GLOBAL TIMBER INDEX ETF FRN | CLAYMORE/BNY MELLON FRONTIER MARKETS ETF SEA | CLAYMORE/DELTA GLOBAL SHIPPING INDEX ETF ROB | CLAYMORE/ROBB REPORT GLOBAL LUXURY INDEX ETF ENY | CLAYMORE/SWM CANADIAN ENERGY INCOME INDEX ETF CRO | CLAYMORE/ZACKS COUNTRY ROTATION ETF HGI | CLAYMORE/ZACKS INTERNATIONAL MULTI-ASSET INCOME INDEX ETF LOGO CLAYMORE(R) WWW.CLAYMORE.COM ... YOUR ROAD TO THE LATEST, MOST UP-TO-DATE INFORMATION ABOUT THE CLAYMORE EXCHANGE-TRADED FUND TRUST 2 PICTURE OF THE WEB PAGE CONTENTS - -------------------------------------------------- DEAR SHAREHOLDER 3 ECONOMIC AND MARKET OVERVIEW 5 MANAGEMENT DISCUSSION OF FUND PERFORMANCE 6 FUND SUMMARY & PERFORMANCE 17 OVERVIEW OF FUND EXPENSES 30 PORTFOLIO OF INVESTMENTS 32 STATEMENT OF ASSETS AND LIABILITIES 48 STATEMENT OF OPERATIONS 50 STATEMENT OF CHANGES IN NET ASSETS 52 FINANCIAL HIGHLIGHTS 56 NOTES TO FINANCIAL STATEMENTS 66 SUPPLEMENTAL INFORMATION 73 TRUST INFORMATION 79 ABOUT THE FUND MANAGER Back Cover The shareholder report you are reading right now is just the beginning of the story. Online at WWW.CLAYMORE.COM, you will find: o Daily and historical fund pricing, fund returns, portfolio holdings and characteristics and distribution history. o Investor guides and fund fact sheets. o Regulatory documents including a prospectus and copies of shareholder reports. Claymore Securities is constantly updating and expanding shareholder information services on each Fund's website, in an ongoing effort to provide you with the most current information about how your Fund's assets are managed, and the results of our efforts. It is just one more small way we are working to keep you better informed about your investment. 2 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 Dear SHAREHOLDER| As the investment adviser to the Claymore exchange-traded funds, Claymore Advisors, LLC ("Claymore" or the "Adviser") is pleased to present the semiannual shareholder report for 10 of our exchange-traded funds ("ETFs" or "Funds"). This report covers performance of these funds for the semiannual period ended November 30, 2009. The ETFs covered in this report are: o Claymore/AlphaShares China Real Estate ETF (ticker:"TAO") o Claymore/AlphaShares China Small Cap Index ETF (ticker:"HAO") o Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF(1) (ticker: "EXB") o Claymore/Beacon Global Timber Index ETF(2) (ticker: "CUT") o Claymore/BNY Mellon Frontier Markets ETF (ticker:"FRN") o Claymore/Delta Global Shipping Index ETF (ticker:"SEA") o Claymore/Robb Report Global Luxury Index ETF (ticker:"ROB") o Claymore/SWM Canadian Energy Income Index ETF (ticker:"ENY") o Claymore/Zacks Country Rotation ETF (ticker:"CRO") o Claymore/Zacks International Multi-Asset Income Index ETF (ticker:"HGI") The investment objective of each Fund is to seek investment results that correspond generally to the performance, before each Fund's fees and expenses, of its respective underlying index as named in its prospectus. On October 15, 2009, Guggenheim Partners, LLC, ("Guggenheim"), a global diversified financial services firm, and Claymore Group Inc., parent of each Fund's Adviser, announced the completion of a previously announced merger. The closing of the transaction took place on October 14, 2009. This transaction resulted in a change-of-control whereby Claymore Group Inc. and its subsidiaries, including the Adviser, became indirect, wholly-owned subsidiaries of Guggenheim. The transaction is not expected to affect the daily operations of the Funds or the investment management activities of the Adviser. Under the Investment Company Act of 1940, as amended, (the "1940 Act"), the consummation of this transaction resulted in the automatic termination of the Advisory Agreement. Accordingly, on September 28, 2009, the Board of Trustees approved an interim investment advisory agreement between the Trust and the Adviser (the "Interim Advisory Agreement"). The Interim Advisory Agreement took effect as of the Effective Date (the "Effective Date") and will terminate upon the earlier of: (a) 150 calendar days after the Effective Date or (b) the approval of a new investment advisory agreement by the shareholders of each Fund. In addition, the advisory fees earned by the Adviser pursuant to the Interim Advisory Agreement will be held in an interest-bearing escrow account with the Trust's custodian during the term of the Interim Advisory Agreement. If the Fund's shareholders approve a new advisory agreement with the Adviser prior to the expiration of the term of the Interim Advisory Agreement, the amount in the escrow account (including any interest earned) with respect to the Fund shall be paid to the Adviser. If the Fund's shareholders do not approve a new advisory agreement with the Adviser prior to the expiration of the term of the Interim Advisory Agreement, the Adviser shall be paid, out of the escrow account with respect to each Fund, the lesser of (i) the Adviser's costs incurred in providing the services under the Interim Advisory Agreement (including any interest earned on that amount while in escrow) with respect to the Fund; or (ii) the total amount in the escrow account (including any interest earned) with respect to the Fund. Other than the effective dates and the provisions set forth above regarding the advisory fees' placement into an escrow account, the terms and conditions of the Interim Advisory Agreement are substantively identical to those - -------------------- 1 Prior to June 15, 2009, the name of the Fund was Claymore/Clear Global Exchanges, Brokers & Asset Managers Index ETF, and the underlying index was the Clear Global Exchanges, Brokers & Asset Managers Index. 2 Prior to June 15, 2009 the name of the Fund was Claymore /Clear Global Timber Index ETF, and the underlying index was the Clear Global Timber Index. Semiannual Report | November 30, 2009 | 3 Claymore Exchange-Traded Fund Trust 2 of the Advisory Agreement. On September 28, 2009, the Board of Trustees approved a new investment advisory agreement between the Trust and the Adviser (the "New Advisory Agreement") and recommended that the New Advisory Agreement be submitted to the shareholders of each Fund for their approval. The New Advisory Agreement will take effect with respect to a Fund upon its approval by the shareholders of such Fund and will have an initial term of one year. Thereafter, the New Advisory Agreement will continue in effect only if its continuance is approved by the Board of Trustees. Other than effective dates, there are no material differences between the terms of the New Advisory Agreement and those of the Advisory Agreement. On January 12, 2010, shareholders of the Claymore/Zacks Country Rotation ETF and Claymore/Beacon Global Timber Index ETF approved the New Advisory Agreement on behalf of such Funds. We consider the merger with Guggenheim to be a tremendous opportunity for Claymore and our clients. As part of a platform as strong and significant as Guggenheim Partners, we will be able to continue developing our unique investment products for financial advisors and individual investors. Claymore remains committed to providing investors with innovative index-strategy-driven investment solutions, and we currently offer ETFs with a wide range of domestic and global themes. We have partnered with a diverse group of index providers to create some of the most distinctive ETFs available. The index providers design indices using defined selection methodologies in the creation of their indices. Unlike ETFs that track traditional indices representing broad market participation, the indices that many of Claymore's U.S.-listed ETFs track or sample from seek to capture the investment potential of unique strategies. We believe that a strategy-driven, quantitative process provides a disciplined investment approach to help meet long-term investment goals. To learn more about economic and market conditions over the last year and the performance of each ETF, we encourage you to read the Economic and Market Overview section of the report, which follows this letter, and the Management Discussion of Fund Performance for each ETF, begins on page 6. Sincerely, /s/ J. Thomas Futrell J. Thomas Futrell Chief Executive Officer Claymore Exchange-Traded Fund Trust 2 4 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 Economic and MARKET OVERVIEW | ================================================================================ ECONOMIC AND MARKET OVERVIEW During the six-month period ended November 30, 2009, capital markets continued the recovery that began in March 2009, following a period of extreme dislocations in financial markets. The Standard & Poor's 500 Index, which is generally regarded as an indicator of the broad U.S. stock market, returned 20.50% for the six months ended November 30, 2009. The pace of recovery in international equity markets was similar to that of the U.S. stock markets with the Morgan Stanley Capital International ("MSCI") World Index, which measures performance of world equity markets, returning 19.53% for the same six-month period. The return differential between developed and emerging markets was not as significant over this period as it was in previous periods, though emerging markets did outperform. The MSCI Europe-Australasia-Far East Index ("EAFE") Index, which is composed of approximately 1,100 companies in 20 developed countries in Europe and the Pacific Basin, returned 19.65%, while the return of the MSCI Emerging Market Index, which measures market performance in global emerging markets, was 24.56% over the same period. In the bond market, lower rated issues performed better than the highest rated bonds, reflecting investors' increasing willingness to embrace credit risk. The Barclays Capital U.S. Aggregate Bond Index, which measures the return of the investment grade rated segment of the U.S. bond market as a whole, returned 6.21% for the six months ended November 30, 2009. The return of the Barclays U.S. Corporate High Yield Index, which measures performance of high yield bonds, often referred to as "junk bonds," was 20.80% . The Barclays U.S. Treasury Composite Index, which measures performance of U.S. Treasury notes with a variety of maturities, returned 3.25% . Reflecting the Federal Reserve's highly accommodative monetary policy, interest rates on short-term securities were at their lowest levels in many years; the return of the Barclays Capital U.S. Treasury Bill 1-3 Months Index was 0.08% for the period. The U.S. equity market demonstrated considerable resiliency during the last few weeks of the period. The bond market strengthened throughout the period, with credit spreads narrowing, the availability of credit improving and liquidity returning to the markets. Strength in the markets, despite economic news that was not entirely positive, seems to indicate that investors believe the economy and markets will improve in the months ahead. In late October, the Bureau of Economic Analysis of the U.S. Department of Commerce reported positive growth in real gross domestic product (GDP) for the third quarter of 2009. While most economists believe that a period of economic recovery began in the summer of 2009, the National Bureau of Economic Research ("NBER") has not yet officially declared an end to the recession that began in December 2007. Business indicators, particularly statistics on inventory and business investment, have begun to strengthen. The housing market has shown some signs of improvement, although recovery will likely be constrained by excess supply. The Federal Reserve has indicated that it will keep short-term rates near zero until they are confident that the economy is progressing toward a self-sustaining recovery. As powerful as these factors are in spurring a recovery, because the U.S. economy is largely driven by consumer activity, stabilization or improvement in the labor markets is essential for a consumer-led recovery. Recent employment reports raise the probability that the U.S. economy will begin to experience job growth, which should support economic growth, in 2010. World economies also appear to be recovering from a severe economic and financial crisis, with particular strength in emerging Asian markets. ================================================================================ INDEX DEFINITIONS All indices described below are unmanaged, reflect no expenses and it is not possible to invest directly in any index. THE MORGAN STANLEY CAPITAL INTERNATIONAL ("MSCI") CHINA INDEX is an unmanaged, capitalization-weighted index that monitors the performance of stocks from the country of China. THE MSCI EMERGING MARKETS INDEX is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. THE DOW JONES WORLD FINANCIALS INDEX is an index consisting of companies whose primary source of profits is the return on financial assets around the world. THE DOW JONES WORLD FORESTRY & PAPER INDEX is a float-adjusted capitalization-weighted index that provides a broad measure of the world forestry and paper markets. According to Dow Jones, the index consists of owners and operators of timber tracts, forest tree nurseries and sawmills excluding providers of finished wood products such as wooden beams, which are classified under Building Materials & Fixtures. Additionally, the index includes producers, converters, merchants and distributors of all grades of paper excluding makers of printed forms, which are classified under Business Support Services, and manufacturers of paper items such as cups and napkins, which are classified under Nondurable Household Products. THE MSCI WORLD INDEX is a float-adjusted capitalization weighted index created by Morgan Stanley Capital International to measure equity market performance throughout the world. THE S&P/TSX COMPOSITE INDEX is a capitalization-weighted index of stocks in all three NASDAQ tiers: Global Select, Global Market and Capital Market. The index was developed with a base level of 100 as of February 5, 1971. THE MSCI EAFE INDEX is a capitalization-weighted measure of stock markets in 21 developed markets of Europe, Australasia and the Far East. The index is calculated using closing local market prices and translated into U.S. dollars using the London close foreign exchange rates. Semiannual Report | November 30, 2009 | 5 Claymore Exchange-Traded Fund Trust 2 Management Discussion of FUND PERFORMANCE | TAO | Claymore/AlphaShares China Real Estate ETF ================================================================================ FUND OVERVIEW THE CLAYMORE/ALPHASHARES CHINA REAL ESTATE ETF, NYSE ARCA TICKER: TAO (the "Fund"), seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the AlphaShares China Real Estate Index (the "Index"). The Index is designed to measure and monitor the performance of the investable universe of publicly-traded companies and real estate investment trusts ("REITs") deriving a majority of their revenues from real estate development, management and/or ownership of property in China or the Special Administrative Regions of China, such as Hong Kong and Macau. The Index was created by AlphaShares, LLC ("AlphaShares"), the Fund's index provider, and is maintained by Standard & Poor's, the Index administrator. The Index will include equity securities of companies of all capitalizations, as defined by AlphaShares. AlphaShares does not guarantee the inclusion of all relevant securities in the Index. The Fund will at all times invest at least 90% of its total assets in common stock, American depositary receipts ("ADRs"), American depositary shares ("ADSs"), global depositary receipts ("GDRs") and international depositary receipts ("IDRs") that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser (the "Adviser") seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 8.74%, representing a change in market price to $18.78 on November 30, 2009, from $17.27 on May 31, 2009. On an NAV basis, the Fund generated a total return of 10.85%, representing a change in NAV to $18.70 on November 30, 2009, from $16.87 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price premium to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the AlphaShares China Real Estate Index returned 11.37% and the MSCI China Index returned 22.38% for the same period. The Fund made an annual distribution of $0.5700 per share on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION Essentially all of the Fund's investments are in the real estate holding and development businesses and are classified in the financials and industrials sectors. Both of these sectors had positive returns for the six-month period ended November 30, 2009. Positions that contributed most significantly to performance included Hongkong Land Holdings Ltd., a property investment, management and development group, Wharf Holdings Ltd., an investment holding company based in Hong Kong; and The Link Real Estate Investment Trust, a real estate investment trust (REIT) based in Hong Kong that invests mainly in retail and car park facilities (5.2%, 5.5% and 4.2% of total investments at period end, respectively). Positions that detracted most significantly from performance included Guangzhou R&F Properties Co. Ltd., a developer of residential and commercial properties in China; Country Garden Holdings Co., an integrated property developer in China; and SOHO China Ltd., company based in Hong Kong that invests in real estate development (1.9%, 2.3% and 1.1% of total investments at period end, respectively). 6 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued HAO | Claymore/AlphaShares China Small Cap Index ETF ================================================================================ FUND OVERVIEW THE CLAYMORE/ALPHASHARES CHINA SMALL CAP INDEX ETF, NYSE ARCA TICKER: HAO (the "Fund") , seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the AlphaShares China Small Cap Index (the "Index"). The Index is designed to measure and monitor the performance of publicly-traded mainland China-based small capitalization companies. For inclusion in the Index, AlphaShares, LLC ("AlphaShares"), the Fund's index provider, defines small-capitalization companies as those companies with a maximum $1.5 billion free-float adjusted market capitalization. The Fund will at all times invest at least 90% of its total assets in common stock, American depositary receipts ("ADRs"), American depositary shares ("ADSs"), global depositary receipts ("GDRs") and international depositary receipts ("IDRs") that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser (the "Adviser"), seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 23.09%, representing a change in market price to $26.12 on November 30, 2009, from $21.22 on May 31, 2009. On an NAV basis, the Fund generated a total return of 25.22%, representing a change in NAV to $25.92 on November 30, 2009, from $20.70 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price premium to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the AlphaShares China Small Cap Index returned 25.79% and the MSCI China Index returned 22.38% for the same period. The Fund made an annual distribution of $0.03 on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION For the six-month period ended November 30, 2009, the consumer goods sector made the strongest contribution to performance, followed by the industrials sector. The telecommunications and utilities sectors were the greatest detractors from performance. Positions that contributed most significantly to performance included BYD Electronic International Co. Ltd., a company based in Hong Kong that produces batteries, liquid crystal displays and other products; Ctrip.com International Ltd., a travel service provider for hotel accommodations, airline tickets and packaged tours in China; and automotive manufacturer Dongfeng Motor Group Co. Ltd. (0.4%, 2.8% and 2.5% of total investments at period end, respectively). Positions that detracted most significantly from performance included Guangzhou R&F Properties Co., Ltd., a developer of residential and commercial properties in China; China National Materials Co. Ltd., a provider of building materials and engineering services; and Country Garden Holdings Co., an integrated property developer in China (1.0%, 0.5% and 1.2% of total investments at period end, respectively). Semiannual Report | November 30, 2009 | 7 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued EXB | Claymore/Beacon Global Exchanges, Brokers & Assets Managers Index ETF ================================================================================ FUND OVERVIEW THE CLAYMORE/BEACON GLOBAL EXCHANGES, BROKERS & ASSET MANAGERS INDEX ETF, NYSE ARCA TICKER: EXB (the "Fund"), seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the Beacon Global Exchanges, Brokers & Asset Managers Index (the "Beacon EB&A Index" or "Index"). Prior to June 15, 2009, the name of the Fund was Claymore/Clear Global Exchanges, Brokers & Asset Managers Index ETF, and the underlying index was the Clear Global Exchanges, Brokers & Asset Managers Index. The Fund and Index name changes were the result of a name change of the Index Provider. The Index is comprised of approximately 100 equity securities traded on global exchanges, including master limited partnerships ("MLPs"), as well as American depositary receipts ("ADRs") and global depositary receipts ("GDRs") of companies that operate a security exchange or brokerage/asset management firm as a primary business. The companies in the Index are intended to be representative of the highest ranking stocks in the global universe of companies engaged in these businesses as determined through independent research provided by Beacon Indexes LLC ("Beacon" or the "Index Provider"). The Index may include large-capitalization, mid-capitalization and small-capitalization companies as defined by Beacon. The Fund will at all times invest at least 90% of its total assets in equity securities, MLPs, ADRs and GDRs that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser (the "Adviser"), seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 8.22%, representing a change in market price to $13.29 on November 30, 2009, from $12.28 on May 31, 2009. On an NAV basis, the Fund generated a total return of 7.79%, representing a change in NAV to $13.43 on November 30, 2009, from $12.46 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price discount to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the Beacon Global Exchanges, Brokers & Asset Managers Index returned 8.24% and the Dow Jones World Financials Index returned 21.74% for the same period. The Fund made an annual distribution of $0.35 per share on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION Since essentially all of the Fund's investments are in the financial sector, performance is driven mainly by the returns of individual positions within this sector. Positions that contributed most significantly to performance included Franklin Resources, Inc., an investment management firm; Goldman Sachs Group, Inc., a bank holding company and global investment firm; and Hong Kong Exchanges & Clearing Ltd., which owns and operates the stock exchange and futures exchange in Hong Kong and their related clearing houses (2.9%, 5.5% and 5.1% of total investments at period end, respectively). Positions that detracted most significantly from performance included Daiwa Securities Group Inc., a Japanese company engaged in the securities, investment, financing and service businesses; NYSE Euronext, a diverse exchange group that offers a range of investment-related products and services, and IntercontinentalExchange Inc., which operates regulated global futures exchanges and over-the-counter markets (2.7%, 3.0% and 3.6% of total investments at period end, respectively). 8 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued CUT | Claymore/Beacon Global Timber Index ETF ================================================================================ FUND OVERVIEW THE CLAYMORE/BEACON GLOBAL TIMBER INDEX ETF, NYSE ARCA TICKER: CUT (the "Fund"), seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the Beacon Global Timber Index (the "Index"). Prior to June 15, 2009, the name of the Fund was Claymore/Clear Global Timber Index ETF, and the underlying index was the Clear Global Timber Index. The Fund and Index name changes were the result of a name change of the Index Provider. All stocks in the Index are selected from the universe of global timber companies. Beacon Indexes LLC ("Beacon" or the "Index Provider") defines global timber companies as firms who own or lease forested land and harvest the timber from such forested land for commercial use and sale of wood-based products, including lumber, pulp or other processed or finished goods such as paper and packaging. Potential Index constituents include securities with market capitalizations greater than $300 million, which includes securities of all market capitalizations, as determined by Beacon. The Fund will at all times invest at least 90% of its total assets in common stock, American depositary receipts ("ADRs") and global depositary receipts ("GDRs") that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 19.54%, representing a change in market price to $17.56 on November 30, 2009, from $14.69 on May 31, 2009. On an NAV basis, the Fund generated a total return of 20.10%, representing a change in NAV to $17.45 on November 30, 2009, from $14.53 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price premium to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the Beacon Global Timber Index returned 21.15% and the Dow Jones World Forestry & Paper Index returned 32.92% for the same period. The Fund made an annual distribution of $0.0490 per share on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION Since approximately 70% of the Fund's portfolio is invested in the materials industry sector, performance of this sector is the main determinant of the Fund's performance, and it was the major contributor to performance for the six-month period ended November 30, 2009. The Fund also has positions in the consumer discretionary and financials sectors, all of which contributed to performance. Positions that contributed most significantly to performance included MeadWestvaco Corp., a global packaging company headquartered in Virginia; and two Finnish paper companies, UPM-Kymmene Oyj and Stora Enso Oyj (5.5%, 4.6% and 4.8% of total investments at period end, respectively). Positions that detracted most significantly from performance included Sappi Limited (ADS), a global paper and pulp company based in South Africa (not held in portfolio at period end); Fibria Celulose SA (ADR), a wood pulp and paper products company headquartered in Brazil (6.0% of total investments at period end); and China Grand Forestry Resources Group Ltd., a Hong Kong-based investment holding company engaged in the ecological forestry business (1.7% of total investments at period end). Semiannual Report | November 30, 2009 | 9 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued FRN | Claymore/BNY Mellon Frontier Markets ETF ================================================================================ FUND OVERVIEW THE CLAYMORE/BNY MELLON FRONTIER MARKETS ETF, NYSE ARCA TICKER: FRN (the "Fund"), seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called The BNY Mellon New Frontier DR Index (the "Frontier Index" or "Index"). The Index is composed of all liquid (as defined by The Bank of New York Mellon, the Fund's index provider (the "Index Provider")) American depositary receipts ("ADRs") and global depositary receipts ("GDRs") of certain countries that are represented in the Index. The Index tracks the performance of depositary receipts, in ADR or GDR form, that trade on the London Stock Exchange ("LSE"), New York Stock Exchange ("NYSE"), NYSE Arca, Inc. ("NYSE Arca"), NYSE Amex, and Nasdaq Stock Market ("NASDAQ") of companies from countries that are defined as the "Frontier Market." The Bank of New York Mellon defines Frontier Market countries based upon an evaluation of gross domestic product growth, per capita income growth, experienced and expected inflation rates, privatization of infrastructure and social inequalities. The universe of potential Index constituents includes all liquid ADRs and GDRs that meet certain criteria with respect to trading volume, market capitalization and price. As of November 30, 2009, potential Index constituents include securities with free-float market capitalizations greater than $150 million, which may include securities of all market capitalizations, as defined by the Index Provider. The Fund will normally invest at least 80% of its total assets in ADRs and GDRs that comprise the Index. The Fund will also normally invest at least 80% of its total assets in securities of issuers from Frontier Market countries (whether directly or through ADRs or GDRs), as defined by the Index Provider, from time to time in the manner set forth in the preceding information. The Fund may invest directly in one or more underlying stocks represented by the ADRs or GDRs comprising the Index under the following limited circumstances: (a) when market conditions result in the underlying stock providing improved liquidity relative to the ADR or GDR; (b) when an ADR or GDR is trading at a significantly different price than its underlying stock; or (c) the timing of trade execution is improved due to the local market in which an underlying stock is traded being open at different times than the market in which the stock's corresponding ADR or GDR is traded. The Fund will at all times invest at least 80% of its total assets in component securities that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index (including underlying stocks in respect of ADRs or GDRs that comprise the Index). Claymore Advisors, LLC, the Fund's adviser (the "Adviser"), seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weights in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 28.11%, representing a change in market price to $18.55 on November 30, 2009, from $14.48 on May 31, 2009. On an NAV basis, the Fund generated a total return of 26.36%, representing a change in NAV to $18.31 on November 30, 2009, from $14.49 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price premium to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, The Bank of New York Mellon New Frontier DR Index returned 29.42% and the Morgan Stanley Capital International ("MSCI") Emerging Markets Index returned 24.56% for the same period. The Fund made an annual distribution of $0.3830 per share on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION For the six-month period ended November 30, 2009, the financials sector made the most significant contribution to performance, followed by the basic materials sector. The only sector with a negative return was telecommunications. Positions that contributed most significantly to performance included KGHM Polska Miedz SA, a Polish producer of non-ferrous metals; Bank Pekao SA, a Polish bank; and Cia de Minas Buenaventura SA, a Peruvian precious metals company (6.0%, 7.3% and 6.0% of total investments at period end, respectively). Positions that detracted the most significantly from performance included Polski Koncern Naftowy ORLEN SA, a Polish producer of refined petrochemical products (not held in portfolio at period end); Orascom Telecom Holding, a mobile telecommunications company based in Egypt (2.9% of total investments at period end) and Gulf Finance House, a Bahrain-based company that offers Islamic investment banking products and services (not held in portfolio at period end). 10 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued SEA | Claymore/Delta Global Shipping Index ETF ================================================================================ FUND OVERVIEW THE CLAYMORE/DELTA GLOBAL SHIPPING INDEX ETF, NYSE ARCA TICKER: SEA (the "Fund"), seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the Delta Global Shipping Index (the "Index"). The Index is designed to measure the performance of companies listed on global developed-market exchanges within the maritime shipping industry. Delta Global Indices, LLC, the Fund's index provider (the "Index Provider"), defines the shipping industry to include companies within the following business segments of the maritime shipping industry: companies deriving a significant portion (in excess of 80%) of their revenues (as defined in the prospectus under Index Construction) from the seaborne transport of dry bulk goods and the leasing and/or operating of tanker ships, container ships, specialty chemical ships and ships that transport liquid natural gas or dry bulk goods. The Index Provider defines developed markets as countries with western-style legal systems, transparent financial rules for financial reporting and sophisticated, liquid and accessible stock exchanges with readily-exchangeable currencies. The market capitalizations of stocks included in the Index includes small-, mid- and large capitalization stocks as defined by the Index Provider. The Fund will at all times invest at least 90% of its total assets in common stock, American depositary receipts ("ADRs") and global depositary receipts ("GDRs") and master limited partnerships ("MLPs") that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser (the "Adviser"), seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weights in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of -2.23%, representing a change in market price to $13.21 on November 30, 2009, from $13.70 on May 31, 2009. On an NAV basis, the Fund generated a total return of 2.41%, representing a change in NAV to $13.17 on November 30, 2009, from $13.04 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price premium to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the Delta Global Shipping Index returned 2.85% and the Morgan Stanley Capital International ("MSCI") World Index returned 19.53% for the same period. The Fund made quarterly distributions of $0.0880 per share on June 30, 2009, $0.0820 per share on September 30, 2009. Additionally the Fund made a quarterly distribution of $0.0340 per share on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION Though more than half of the Fund's portfolio is invested in the industrials sector, performance of this sector had a negative return for the six-month period ended November 30, 2009. Positions in the oil & gas sector contributed positively to performance and were the main determinant of the Fund's performance during this period. Positions that contributed most significantly to performance included Seaspan Corp., a company that owns and charters container ships primarily operating from Hong Kong, with two related companies based in Bermuda; Teekay LNG Partners L.P., an international provider of marine transportation services for liquefied natural gas, liquefied petroleum gas and crude oil, and Teekay Corp., a provider of international crude oil and petroleum product transportation services (3.5%, 4.1% and 4.6% of total investments at period end, respectively). Positions that detracted most significantly from performance included Excel Maritime Carriers Ltd., a provider of worldwide sea borne transportation services for dry bulk cargo primarily operating in Greece; and two Japanese marine transportation companies, Kawasaki Kisen Kaisha Ltd. and Nippon Yusen KK (2.4%, 1.7% and 2.6% of total investments at period end, respectively). Semiannual Report | November 30, 2009 | 11 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued ROB | Claymore/Robb Report Global Luxury Index ETF ================================================================================ FUND OVERVIEW THE CLAYMORE/ROBB REPORT GLOBAL LUXURY INDEX ETF , NYSE ARCA TICKER: ROB (the "Fund"), seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the Robb Report Global Luxury Index (the "Index"). The Index is comprised of no fewer than 20 and up to 100 equity securities traded on major global developed market exchanges, as well as American depositary receipts ("ADRs") and global depositary receipts ("GDRs") of companies whose primary business is the provision of global luxury goods and services. These may include retailers, manufacturers (which may include automobiles, boats, aircraft, and consumer electronics), travel and leisure firms, and investment and other professional services firms. The designation of such firms as "luxury" is determined by the publisher of the Robb Report Magazine, CurtCo Robb Media, LLC (the "Robb Report" or the "Index Provider"). Robb Report generally defines "developed markets" as countries whose economies have high income levels, strong legal protection and sophisticated stock exchanges. The Fund will at all times invest at least 90% of its total assets in common stock and ADRs and GDRs that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser, seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weights in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 30.60%, representing a change in market price to $16.92 on November 30, 2009, from $12.96 on May 31, 2009. On an NAV basis, the Fund generated a total return of 30.71%, representing a change in NAV to $17.11 on November 30, 2009, from $13.09 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price discount to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the Robb Report Global Luxury Index returned 31.27% and the Morgan Stanley Capital International ("MSCI") World Index returned 19.53% for the same period. The Fund made an annual distribution of $0.1380 per share on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION Since more than half of the Fund's assets are invested in the consumer discretionary sector, positions in this sector generally drive performance. Other sectors represented are financials, consumer staples and industrials. All of the sectors in which the Fund has investments had positive returns for the six-month period ended November 30, 2009. Positions that contributed most significantly to performance included Wynn Resorts, Ltd., a U.S.-based developer, owner and operator of destination casino resorts; The Swatch Group AG, a Swiss producer of watches, jewelry and accessories; and Compagnie Financiere Richemont SA, a Swiss producer of watches, jewelry, writing instruments, leather goods and other luxury items (4.4%, 5.4% and 5.1% of total investments at period end, respectively). Positions that detracted most significantly from performance included Mandarin Oriental International Ltd., a hotel operator headquartered in Hong Kong; Julius Baer Group Ltd., a Swiss private banking group; and Wilmington Trust Corp., a U.S.-based financial holding company (0.8%, 2.6% and 0.5% of total investments at period end, respectively). 12 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued ENY | Claymore/SWM Canadian Energy Income Index ETF ================================================================================ THE CLAYMORE/SWM CANADIAN ENERGY INCOME INDEX ETF, NYSE ARCA TICKER: ENY (the "Fund"), seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the Sustainable Canadian Energy Income Index (the "Index"). The Index is comprised of 30 stocks selected, based on investment and other criteria, from a universe of companies listed on the Toronto Stock Exchange (the "TSX"), NYSE Amex, NASDAQ or NYSE. The universe of companies includes over 25 TSX listed Canadian royalty trusts and 20 oil sands resource producers that are classified as oil and gas producers. The companies in the universe are selected using criteria as identified by Sustainable Wealth Management, Ltd., ("SWM" or the "Index Provider"). The Index is designed to combine the most profitable and liquid Canadian royalty trusts with the most highly focused and fastest growing oil sands producers using a tactical asset allocation model based on the trend in crude oil prices. The Index allocates between the oil sands and royalty trust constituents according to the current price trend of crude oil. If the current quarter's closing price is above the four-quarter moving average price, crude oil is determined to be in a bull phase. If it is at or below the four-quarter moving average price, crude oil is determined to be in a bear phase. In a bull phase the asset allocation is generally 70% oil sands and 30% income trusts. In a bear phase the asset allocation is generally 30% oil sands and 70% income trusts. The Fund will at all times invest at least 90% of its total assets in securities that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser (the "Adviser") seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 16.21%, representing a change in market price to $16.40 on November 30, 2009, from $14.38 on May 31, 2009. On an NAV basis, the Fund generated a total return of 18.81%, representing a change in NAV to $16.44 on November 30, 2009, from $14.10 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price discount to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the Sustainable Canadian Energy Income Index returned 19.96% and the S&P/TSX Composite Index ("S&P/TSX") returned 11.99% for the same period. The Fund made quarterly distributions of $0.156 per share on June 30, 2009 and $0.106 per share on September 30, 2009. The Fund made a quarterly distribution of $$0.114 per share and a supplemental distribution of $0.122 per share on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION During the six-month period ended November 30, 2009, the Fund's investments were split approximately evenly between the oil & gas and the financials sectors. (Investments in energy trusts are classified in the financials sector.) Both sectors contributed to return; the oil & gas sector made the greater contribution. Positions that contributed most significantly to performance included Baytex Energy Trust, an open-end investment trust; Ivanhoe Energy Inc., an international heavy oil development and production company; and Petrobank Energy & Resources Ltd., which is engaged in the exploration for and development and production of oil and natural gas in the Western Canadian Sedimentary Basin and in South America (6.9%, 5.9% and 3.9% of total investments at period end, respectively). Positions that detracted most significantly from performance included Enerplus Resources Fund, an open-end investment trust (4.2% of total investments at period end); Pengrowth Energy Trust, an oil and gas energy trust; and Trilogy Energy Trust, which acquires, develops, produces and sells natural gas, crude oil and natural gas liquids (the two aforementioned holdings were not held in the portfolio at period end.) Semiannual Report | November 30, 2009 | 13 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued CRO | Claymore/Zacks Country Rotation ETF ================================================================================ FUND OVERVIEW THE CLAYMORE/ZACKS COUNTRY ROTATION ETF, NYSE ARCA TICKER: CRO (the "Fund"), seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the Zacks Country Rotation Index (the "Index"). The Index is comprised of 200 stocks selected, based on investment and other criteria, from a universe of international companies listed on developed international market exchanges. Zacks Investment Research, Inc. ("Zacks"), the Fund's index provider, defines developed international markets as countries whose economies have high income levels, strong legal protection and sophisticated stock exchanges. The Index uses a proprietary multi-factor quantitative methodology developed by Zacks to seek to determine those countries with potentially superior risk-return profiles and within those countries select a basket of stocks. The Index is designed to select and weight a group of stocks that have the potential, on a risk-adjusted basis, to outperform the Morgan Stanley Capital International Europe, Australasia and Far East Index ("MSCI EAFE Index") and other developed international benchmark indices. The companies in the universe are selected using a proprietary methodology developed by Zacks. The Fund will at all times invest at least 90% of its total assets in common stock and American depositary receipts ("ADRs") that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser (the "Adviser") seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 18.52%, representing a change in market price to $16.83 on November 30, 2009, from $14.20 on May 31, 2009. On an NAV basis, the Fund generated a total return of 18.91%, representing a change in NAV to $16.79 on November 30, 2009, from $14.12 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price premium to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the Zacks Country Rotation Index returned 19.40% and the MSCI EAFE Index returned 19.65% for the same period. The Fund made an annual distribution of $0.3840 on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION For the six-month period ended November 30, 2009, the financials sector made the strongest contribution to performance, followed by the industrials sector. All ten industry sectors in which the Fund was invested had positive returns; the sectors that contributed least to the Fund's performance were energy and information technology. Positions that contributed most significantly to performance included Noble Group Ltd., a diversified investment holding company headquartered in Hong Kong; Genting Singapore PLC, a resort development company; and Banco Santander SA, a bank holding company headquartered in Spain (1.4%, 1.1% and 0.9% of total investments at period end, respectively). Positions that detracted most significantly from performance included three Japanese companies: Mizuho Financial Group, Inc., a financial services firm; Hitachi Ltd., a diversified manufacturing company; and Mitsubishi UFJ Financial Group, Inc., a holding company engaged in a range of financial operations (0.5%, 0.4% and 0.6% of total investments at period end, respectively). 14 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued HGI | Claymore/Zacks International Multi-Asset Income Index ================================================================================ FUND OVERVIEW THE CLAYMORE/ZACKS INTERNATIONAL MULTI-ASSET INCOME INDEX ETF, NYSE ARCA TICKER: HGI (the "Fund") , seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an index called the Zacks International Multi-Asset Income Index (the "Index"). The Index is comprised of 150 stocks selected, based on investment and other criteria, from a universe of international companies, global REITs, master limited partnerships ("MLPs"), Canadian royalty trusts, American depositary receipts ("ADRs") of emerging market companies and U.S. listed closed-end funds that invest in international companies. The companies in the universe are selected using a proprietary strategy developed by Zacks Investment Research, Inc. ("Zacks"), the Fund's index provider. The Index is designed to identify a diversified group of companies with potentially high income and superior risk-return profiles, as determined by Zacks, in an effort to potentially outperform the Morgan Stanley Capital International Europe, Australasia and Far East ("MSCI EAFE Index") and other benchmark indices on a risk adjusted basis. The Index constituent selection methodology utilizes multi-factor proprietary selection rules to identify those stocks that offer the greatest potential from a yield and risk/return perspective. The approach is specifically designed to enhance investment applications and investability. The Fund will at all times invest at least 90% of its total assets in stocks that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Claymore Advisors, LLC, the Fund's adviser (the "Adviser") seeks a correlation over time of 0.95 or better between the Fund's performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index. ================================================================================ FUND PERFORMANCE All Fund returns cited--whether based on net asset value ("NAV") or market price--assume the reinvestment of all distributions. This report discusses the semiannual fiscal period ended November 30, 2009. On a market price basis, the Fund generated a total return of 24.95%, representing a change in market price to $17.72 on November 30, 2009, from $14.44 on May 31, 2009. On an NAV basis, the Fund generated a total return of 23.65%, representing a change in NAV to $17.38 on November 30, 2009, from $14.31 on May 31, 2009. At the end of the period the Fund's shares were trading at a market price premium to NAV, which is to be expected from time to time. For underlying index and broad market comparison purposes, the Zacks International Multi-Asset Income Index returned 23.70% and the MSCI EAFE Index returned 19.65% for the same period. The Fund made quarterly distributions of $0.1370 per share on June 30, 2009 and $0.1380 on September 30, 2009. In addition, the Fund made a quarterly distribution of $0.1660 per share on December 31, 2009. ================================================================================ PERFORMANCE ATTRIBUTION For the six-month period ended November 30, 2009, the financials sector made the strongest contribution to returns, followed by the materials and industrials sectors. All 10 sectors in which the Fund was invested had positive returns; the information technology and consumer discretionary sectors contributed least to the Fund's return. Positions that contributed most significantly to performance included Danske Bank A/S, a Danish financial institution (not held in portfolio at period end); Penn West Energy Trust, an open-ended Canadian investment trust involved in petroleum and natural gas (3.4% of total investments at period end); and Magyar Telekom Telecommunications PLC (ADR), a provider of telecommunications services in Hungary (not held in portfolio at period end). Positions that detracted most significantly from performance included Ladbrokes PLC, a betting and gaming company based in the U.K. (1.4% of total investments at period end); Harvest Energy Trust, a Canadian energy development trust (not held in portfolio at period end); and Nexen, Inc., a global energy company based in Canada (1.2% of total investments at period end). Semiannual Report | November 30, 2009 | 15 Claymore Exchange-Traded Fund Trust 2 | MANAGEMENT DISCUSSION OF FUND PERFORMANCE continued ================================================================================ RISKS AND OTHER CONSIDERATIONS The views expressed in this report reflect those of the portfolio managers and Claymore only through the report period as stated on the cover. These views are subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any kind. The material may also contain forward looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass. This information does not represent an offer to sell securities of the Funds and it is not soliciting an offer to buy securities of the Funds. An investment in the various Claymore ETFs is subject to certain risks and other considerations. Below are some general risks and considerations associated with investing in the Fund, which may cause you to lose money, including the entire principal that you invest. Please refer to the individual ETF prospectus for a more detailed discussion of the Fund-specific risks and considerations. EQUITY RISK: The value of the securities held by the Funds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Funds participate, or factors relating to specific companies in which the Funds invest. 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. 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. NON-CORRELATION RISK: The Fund's return may not match the return of the Index including, but not limited to, operating expenses and costs in buying and selling securities to reflect changes in the Index. The Fund may not be fully invested at times. If the Fund utilizes a sampling approach or futures or other derivative positions, its return may not correlate with the Index return, as would be the case if it purchased all of the stocks with the same weightings as the Index. REPLICATION MANAGEMENT RISK: The Fund is not "actively" managed. Therefore, it would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from the Index. ISSUER-SPECIFIC CHANGES: The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. NON-DIVERSIFIED FUND RISK: The Fund can invest a greater portion of assets in securities of individual issuers than a diversified fund. Changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. INDUSTRY RISK: If the Index is comprised of issuers in a particular industry or sector, the Fund would therefore be focused in that industry or sector. Accordingly, the Fund may be subject to more risks than if it were broadly diversified over numerous industries and sectors of the economy. EMERGING MARKETS RISK (CUT, FRN, HGI, TAO, HAO): 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. CANADIAN RISK (ENY AND HGI): Investing in Canadian royalty trusts and stocks listed on the TSX are subject to: Commodity Exposure Risk, Reliance on Exports Risk, U.S. Economic Risk and Structural Risk (Political Risk). MASTER LIMITED PARTNERSHIP (MLP) RISK (EXB, FRN, HGI AND SEA): Investments in securities of MLPs involve risks that differ from an investment in common stock. Holders of the units of MLPs have more limited control and limited rights to vote on matters affecting the partnership. There are also certain tax risks associated with an investment in units of MLPs. CHINA INVESTMENT RISK (HAO AND TAO): 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. See prospectus for more information. REIT RISK (CRO, CUT, HGI AND TAO): Investments in securities of real estate companies involve risks. These risks include, among others, adverse changes in national, state or local real estate conditions; obsolescence of properties; changes in the availability, cost and terms of mortgage funds; and the impact of changes in environmental laws. RISKS OF INVESTING IN OTHER INVESTMENT COMPANIES (HGI): Investments in these securities involve risks, including, among others, that shares of other investment companies are subject to the management fees and other expenses of those companies, and the purchase of shares of some investment companies (in the case of closed-end investment companies) may sometimes require the payment of substantial premiums above the value of such companies' portfolio securities or net asset values. RISKS OF INVESTING IN FRONTIER SECURITIES (FRN): Investment in securities in emerging market countries involves risks not associated with investments in securities in developed countries, including risks associated with expropriation and/or nationalization, political or social instability, armed conflict, the impact on the economy as a result of civil war, religious or ethnic unrest and the withdrawal or non-renewal of any license enabling the Fund to trade in securities of a particular country, confiscatory taxation, restrictions on transfers of assets, lack of uniform accounting, auditing and financial reporting standards, less publicly available financial and other information, diplomatic development which could affect U.S. investments in those countries and potential difficulties in enforcing contractual obligations. Frontier countries generally have smaller economies or less developed capital markets than traditional emerging markets, and, as a result, the risk of investing in emerging market countries are magnified in frontier countries. As of the date of this prospectus, a significant percentage of the Index is comprised of securities of companies from Poland, Chile and Egypt. To the extent that the index is focused on securities of any one country, including Poland, Chile or Egypt, the value of the index will be especially affected by adverse developments in such country, including the risks described above. Please note: the above risks are a broad overview of the potential risks associated with investing in the Frontier markets. Investing in securities of Frontier countries involves significant risk. The prospectus contains a more detailed discussion of these individual risks and should be evaluated when determining an investor's risk tolerance. LUXURY RISK (ROB): Depends heavily on the disposable household income and consumer spending of a relatively small segment and therefore could magnify volatility. See prospectus for more information. IN ADDITION TO THE RISKS DESCRIBED, THERE ARE CERTAIN OTHER RISKS RELATED TO INVESTING IN THE FUNDS. THESE RISKS ARE DESCRIBED FURTHER IN THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION. 16 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | Fund SUMMARY & PERFORMANCE | AS OF NOVEMBER 30, 2009 (unaudited) TAO | Claymore/AlphaShares China Real Estate ETF FUND STATISTICS - -------------------------------------------------------------- Share Price $18.78 Net Asset Value $18.70 Premium/Discount to NAV 0.43% Net Assets ($000) $84,517 - -------------------------------------------------------------- TOTAL RETURNS - -------------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 12/18/07) MONTHS YEAR (ANNUALIZED) - -------------------------------------------------------------- CLAYMORE/ALPHASHARES CHINA REAL ESTATE ETF NAV 10.85% 94.61% -9.39% Market 8.74% 91.72% -9.25% - -------------------------------------------------------------- AlphaShares China Real Estate Index 11.37% 96.21% -8.07% - -------------------------------------------------------------- MSCI China Index 22.38% 77.95% -8.50% - -------------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $23.50 per share for share price returns or initial net asset value (NAV) of $23.50 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 1.74%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.70% while the Fund's annualized gross operating expense ratio was determined to be 0.89% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.65% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.65% . Without this expense cap, actual returns would be lower. % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - -------------------------------------------------------------- China 99.0% Singapore 1.0% - -------------------------------------------------------------- % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - -------------------------------------------------------------- Hong Kong Dollar 92.8% United States Dollar 6.2% Singapore Dollar 1.0% - -------------------------------------------------------------- PORTFOLIO BREAKDOWN % OF NET ASSETS - -------------------------------------------------------------- Financials/Real Estate 99.2% Industrials 0.6% - -------------------------------------------------------------- Total Investments 99.8% Other Assets in excess of Liabilities 0.2% - -------------------------------------------------------------- NET ASSETS 100.0% - -------------------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - -------------------------------------------------------------- Wharf Holdings Ltd. 5.5% New World Development Ltd. 5.3% Hongkong Land Holdings Ltd. 5.2% Henderson Land Development Co. Ltd. 5.0% Sino Land Co. Ltd. 4.8% Sun Hung Kai Properties Ltd. 4.7% Swire Pacific Ltd. - Class A 4.5% Hang Lung Properties Ltd. 4.4% Hang Lung Group Ltd. 4.4% Link Real Estate Investment Trust (The) - REIT 4.2% - -------------------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com. The above summaries are provided for informational purposes only, and should not be viewed as recommendations. Semiannual Report | November 30, 2009 | 17 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued HAO | Claymore/AlphaShares China Small Cap Index ETF FUND STATISTICS - ------------------------------------------------------------- Share Price $26.12 Net Asset Value $25.92 Premium/Discount to NAV 0.77% Net Assets ($000) $302,750 - ------------------------------------------------------------- TOTAL RETURNS - ------------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 1/30/08) MONTHS YEAR (ANNUALIZED) - ------------------------------------------------------------- CLAYMORE/ALPHASHARES CHINA SMALL CAP INDEX ETF NAV 25.22% 130.43% 3.89% Market 23.09% 136.77% 4.32% - ------------------------------------------------------------- AlphaShares China Small Cap Index 25.79% 134.42% 5.12% - ------------------------------------------------------------- MSCI China Index 22.38% 77.95% -1.94% - ------------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $24.34 per share for share price returns or initial net asset value (NAV) of $24.34 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 1.64%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.75% while the Fund's annualized gross operating expense ratio was determined to be 0.87% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.70% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.70% . Without this expense cap, actual returns would be lower. % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ----------------------------------------------------- China 98.7% Singapore 1.3% - ----------------------------------------------------- % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ----------------------------------------------------- Hong Kong Dollar 81.8% United States Dollar 16.3% Singapore Dollar 1.9% - ----------------------------------------------------- PORTFOLIO BREAKDOWN % OF NET ASSETS - ----------------------------------------------------- Industrials 22.4% Information Technology 17.0% Consumer Discretionary 16.2% Financials 15.3% Materials 12.0% Consumer Staples 7.3% Energy 4.5% Health Care 3.5% Utilities 1.2% Telecommunication Services 0.6% - ----------------------------------------------------- Total Investments 100.0% - ----------------------------------------------------- Other Assets in excess of Liabilities 0.0% - ----------------------------------------------------- NET ASSETS 100.0% - ----------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ----------------------------------------------------- Citic Pacific Ltd. 3.9% Netease.com, ADR 2.8% Ctrip.com International Ltd., ADR 2.8% Dongfeng Motor Group Co. Ltd. 2.5% Yanzhou Coal Mining Co. Ltd. 2.2% Jiangxi Copper Co. Ltd. 2.0% Sino-Ocean Land Holdings Ltd. 1.9% Byd Co. Ltd. 1.7% Alibaba.com Ltd. 1.7% Denway Motors Ltd. 1.6% - ----------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com. The above summaries are provided for informational purposes only, and should not be viewed as recommendations. 18 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued EXB | Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF FUND STATISTICS - ----------------------------------------------------------- Share Price $13.29 Net Asset Value $13.43 Premium/Discount to NAV -1.04% Net Assets ($000) $3,224 - ----------------------------------------------------------- TOTAL RETURNS - ----------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 6/27/07) MONTHS YEAR (ANNUALIZED) - ----------------------------------------------------------- CLAYMORE/BEACON GLOBAL EXCHANGES, BROKERS & ASSET MANAGERS INDEX ETF NAV 7.79% 46.20% -19.81% Market 8.22% 47.20% -20.23% - ----------------------------------------------------------- Beacon Global Exchanges, Brokers & Assets Managers Index 8.24% 47.81% -18.24% - ----------------------------------------------------------- Dow Jones World Financials Index 21.74% 35.99% -22.22% - ----------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $24.56 per share for share price returns or initial net asset value (NAV) of $24.56 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 2.55%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.70%, while the Fund's annualized gross operating expense ratio was determined to be 4.44% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.65% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.65% . Without this expense cap, actual returns would be lower. % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ----------------------------------------------------- United States 59.1% Japan 10.5% United Kingdom 6.7% Hong Kong 5.1% Germany 4.8% Canada 2.7% Australia 2.4% Singapore 2.1% Bermuda 1.9% Switzerland 1.8% Spain 1.0% Netherlands 0.5% Sweden 0.4% Mexico 0.3% South Africa 0.3% Italy 0.3% Thailand 0.1% Cayman Islands 0.0% Pakistan 0.0% Iceland 0.0% - ----------------------------------------------------- % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ----------------------------------------------------- United States Dollar 60.9% Japanese Yen 10.5% Pound Sterling 6.7% Euro 6.5% Hong Kong Dollar 5.2% All other currencies 10.2% - ----------------------------------------------------- PORTFOLIO BREAKDOWN % OF NET ASSETS - ----------------------------------------------------- Financials 98.6% - ----------------------------------------------------- Total Common Stocks 98.6% Master Limited Partnerships 1.3% Other Assets in excess of Liabilities 0.1% - ----------------------------------------------------- NET ASSETS 100.0% - ----------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ----------------------------------------------------- Goldman Sachs Group, Inc. 5.5% Morgan Stanley 5.2% Hong Kong Exchanges and Clearing Ltd. 5.1% Nomura Holdings, Inc. 5.1% Charles Schwab Corp. 4.9% Deutsche Boerse AG 4.8% CME Group, Inc. 4.6% Bank of New York Mellon Corp. 4.3% State Street Corp. 3.7% IntercontinentalExchange, Inc. 3.6% - ----------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com.The above summaries are provided for informational purposes only, and should not be viewed as recommendations. Semiannual Report | November 30, 2009 | 19 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued CUT | Claymore/Beacon Global Timber Index ETF FUND STATISTICS - -------------------------------------------------------- Share Price $17.56 Net Asset Value $17.45 Premium/Discount to NAV 0.63% Net Assets ($000) $92,821 - -------------------------------------------------------- TOTAL RETURNS - -------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 11/9/07) MONTHS YEAR (ANNUALIZED) - -------------------------------------------------------- CLAYMORE/BEACON GLOBAL TIMBER INDEX ETF NAV 20.10% 62.78% -14.34% Market 19.54% 66.12% -14.10% - -------------------------------------------------------- Beacon Global Timber Index 21.15% 65.69% -12.59% - -------------------------------------------------------- Dow Jones World Forestry & Paper Index 32.92% 7.74% -23.69% - -------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $24.91 per share for share price returns or initial net asset value (NAV) of $24.91 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 1.08%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.70% while the Fund's annualized gross operating expense ratio was determined to be 0.85% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.65% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.65% . Without this expense cap, actual returns would be lower. % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ----------------------------------------------------- United States 30.2% Japan 17.6% Finland 9.4% Sweden 8.7% Canada 7.8% Brazil 6.0% South Africa 5.0% Portugal 4.5% Ireland 4.4% Spain 2.4% Australia 2.3% Bermuda 1.7% - ----------------------------------------------------- % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ----------------------------------------------------- United States Dollar 36.2% Euro 20.8% Japanese Yen 17.5% Swedish Krona 8.7% Canadian Dollar 7.8% South African Rand 5.0% All other currencies 4.0% - ----------------------------------------------------- PORTFOLIO BREAKDOWN % OF NET ASSETS - ----------------------------------------------------- Materials 86.7% Financials 8.9% Consumer Discretionary 4.3% - ----------------------------------------------------- Total Investments 99.9% Other Assets in excess of Liabilities 0.1% - ----------------------------------------------------- NET ASSETS 100.0% - ----------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ----------------------------------------------------- Fibria Celulose SA - ADR 6.0% MeadWestvaco Corp. 5.5% Mondi Ltd. 5.0% Sino-Forest Corp. 5.0% Stora Enso Oyj - R Shares 4.8% UPM-Kymmene Oyj 4.6% Hokuetsu Kishu Paper Co. Ltd. 4.5% Weyerhaeuser Co. 4.5% Svenska Cellulosa AB - B Shares 4.5% Nippon Paper Group, Inc. 4.5% - ----------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com. The above summaries are provided for informational purposes only, and should not be viewed as recommendations. 20 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued FRN | Claymore/BNY Mellon Frontier Markets ETF FUND STATISTICS - ------------------------------------------------------ Share Price $18.55 Net Asset Value $18.31 Premium/Discount to NAV 1.31% Net Assets ($000) $24,900 - ------------------------------------------------------ TOTAL RETURNS - ------------------------------------------------------ SINCE SIX ONE INCEPTION (INCEPTION 6/12/08) MONTHS YEAR (ANNUALIZED) - ------------------------------------------------------ CLAYMORE/BNY MELLON FRONTIER MARKETS ETF NAV 26.36% 54.48% -17.21% Market 28.11% 55.33% -16.47% - ------------------------------------------------------ The BNY Mellon New Frontier DR Index 29.42% 53.12% -15.76% - ------------------------------------------------------ MSCI Emerging Markets Index 24.56% 84.50% -8.77% - ------------------------------------------------------ PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $24.34 per share for share price returns or initial net asset value (NAV) of $24.34 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 2.22%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.71% while the Fund's annualized gross operating expense ratio was determined to be 1.23% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.65% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.65% . Without this expense cap, actual returns would be lower. % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ----------------------------------------------------------- Chile 29.0% Poland 18.1% Egypt 13.5% Colombia 10.6% Kazakhstan 6.1% Peru 6.0% Argentina 5.6% Lebanon 3.4% Nigeria 3.2% Oman 1.5% Qatar 1.4% Luxembourg 0.6% Georgia 0.5% Jersey 0.2% Pakistan 0.2% United Arab Emirates 0.1% - ----------------------------------------------------------- % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ----------------------------------------------------------- United States 100.0% - ----------------------------------------------------------- PORTFOLIO BREAKDOWN % OF NET ASSETS - ----------------------------------------------------------- Financials 35.5% Materials 16.6% Utilities 13.4% Energy 12.3% Telecommunication Services 10.7% Industrials 6.9% Consumer Staples 4.4% Consumer Discretionary 0.1% - ----------------------------------------------------------- Total Investments 99.9% Other Assets in excess of Liabilities 0.1% - ----------------------------------------------------------- NET ASSETS 100.0% - ----------------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ----------------------------------------------------------- Bank Pekao SA - GDR 7.3% Empresa Nacional de Electricidad SA - ADR 6.8% Ecopetrol SA - ADR 6.6% Enersis SA - ADR 6.4% KGHM Polska Miedz SA - GDR 6.0% Cia de Minas Buenaventura SA - ADR 6.0% KazMunaiGas Exploration Production - GDR 4.8% Telekomunikacja Polska SA - GDR 4.8% Sociedad Quimica y Minera de Chile SA - ADR 4.4% Orascom Construction Industries - GDR 4.1% - ----------------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com. The above summaries are provided for informational purposes only, and should not be viewed as recommendations. Semiannual Report | November 30, 2009 | 21 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued SEA | Claymore/Delta Global Shipping Index ETF FUND STATISTICS - --------------------------------------------------------- Share Price $13.21 Net Asset Value $13.17 Premium/Discount to NAV 0.30% Net Assets ($000) $115,915 - --------------------------------------------------------- TOTAL RETURNS - --------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 8/25/08) MONTHS YEAR (ANNUALIZED) - --------------------------------------------------------- CLAYMORE/DELTA GLOBAL SHIPPING INDEX ETF NAV 2.41% 45.00% -37.27% Market -2.23% 48.35% -37.14% - --------------------------------------------------------- Delta Global Shipping Index 2.85% 48.10% -36.01% - --------------------------------------------------------- MSCI World Index 19.53% 31.59% -9.13% - --------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM.THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $25.12 per share for share price returns or initial net asset value (NAV) of $25.12 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 1.78%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.74% while the Fund's annualized gross operating expense ratio was determined to be 0.87% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.65% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.65% . Without this expense cap, actual returns would be lower. PORTFOLIO BREAKDOWN % OF NET ASSETS - ------------------------------------------------------------------ Industrials 58.3% Energy 41.6% - ------------------------------------------------------------------ Total Common Stock and Master Limited Partnerships 99.9% Other Assets in excess of Liabilities 0.1% - ------------------------------------------------------------------ NET ASSETS 100.0% - ------------------------------------------------------------------ % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ------------------------------------------------------------------ Marshall Islands 20.4% Bermuda 17.8% United States 15.0% China 13.4% Japan 9.0% Denmark 8.5% Belgium 8.4% Singapore 5.1% Liberia 2.4% - ------------------------------------------------------------------ % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ------------------------------------------------------------------ United States Dollar 55.6% Hong Kong Dollar 13.4% Japanese Yen 9.0% Danish Krone 8.5% Euro 8.4% Singapore Dollar 5.1% - ------------------------------------------------------------------ % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ------------------------------------------------------------------ Teekay Corp. 4.6% D/S Norden 4.4% Euronav NV 4.4% Diana Shipping, Inc. 4.4% Frontline Ltd. 4.2% Ship Finance International Ltd. 4.2% Teekay LNG Partners LP 4.1% Torm A/S 4.1% Compagnie Maritime Belge SA 4.0% Tsakos Energy Navigation Ltd. 4.0% - ------------------------------------------------------------------ Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com. The above summaries are provided for informational purposes only, and should not be viewed as recommendations. 22 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued ROB | Claymore/Robb Report Global Luxury Index ETF FUND STATISTICS - ---------------------------------------------------------- Share Price $16.92 Net Asset Value $17.11 Premium/Discount to NAV -1.11% Net Assets ($000) $6,845 - ---------------------------------------------------------- TOTAL RETURNS - ---------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 07/30/07) MONTHS YEAR (ANNUALIZED) - ---------------------------------------------------------- CLAYMORE/ROBB REPORT GLOBAL LUXURY INDEX ETF NAV 30.71% 62.93% -12.20% Market 30.60% 62.34% -12.61% - ---------------------------------------------------------- Robb Report Global Luxury Index 31.27% 64.58% -10.35% - ---------------------------------------------------------- MSCI World Index 19.53% 31.59% -10.12% - ---------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $23.80 per share for share price returns or initial net asset value (NAV) of $23.80 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 4.75%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.75% while the Fund's annualized gross operating expense ratio was determined to be 4.78% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.70% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.70% . Without this expense cap, actual returns would be lower. % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ----------------------------------------------------- France 28.1% United States 25.1% Germany 13.2% Switzerland 13.0% Italy 7.1% Japan 5.2% Bermuda 4.3% United Kingdom 2.2% Brazil 1.8% - ----------------------------------------------------- % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ----------------------------------------------------- Euro 48.4% United States Dollar 28.2% Swiss Franc 13.0% Japanese Yen 5.2% All other currencies 5.2% - ----------------------------------------------------- PORTFOLIO BREAKDOWN % OF NET ASSETS - ----------------------------------------------------- Consumer Discretionary 72.7% Consumer Staples 10.0% Financials 6.1% Industrials 7.1% - ----------------------------------------------------- Total Common Stock 95.9% Preferred Stock 3.9% Rights 0.1% - ----------------------------------------------------- Total Investments 99.9% - ----------------------------------------------------- Other Assets in excess of Liabilities 0.1% - ----------------------------------------------------- NET ASSETS 100.0% - ----------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ----------------------------------------------------- Swatch Group AG (The) 5.4% PPR 5.1% Compagnie Financiere Richemont SA 5.1% Daimler AG 4.8% Christian Dior SA 4.7% Pernod-Ricard SA 4.7% Coach, Inc. 4.6% Bayerische Motoren Werke AG 4.5% Wynn Resorts Ltd. 4.4% Luxottica Group SpA 4.3% - ----------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com. The above summaries are provided for informational purposes only, and should not be viewed as recommendations. Semiannual Report | November 30, 2009 | 23 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued ENY | Claymore/SWM Canadian Energy Income Index ETF FUND STATISTICS - ------------------------------------------------------- Share Price $16.40 Net Asset Value $16.44 Premium/Discount to NAV -0.24% Net Assets ($000) $67,723 - ------------------------------------------------------- TOTAL RETURNS - ------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 7/3/07) MONTH YEAR (ANNUALIZED) - ------------------------------------------------------- CLAYMORE/SWM CANADIAN ENERGY INCOME INDEX ETF NAV 18.81% 33.33% -11.69% Market 16.21% 38.82% -11.81% - ------------------------------------------------------- Sustainable Canadian Energy Income Index 19.96% 36.52% -9.74% - ------------------------------------------------------- S&P/TSX Composite Index 11.99% 27.58% -4.91% - ------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $25.05 per share for share price returns or initial net asset value (NAV) of $25.05 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 1.23%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.70% while the Fund's annualized gross operating expense ratio was determined to be 0.91% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.65% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.65% . Without this expense cap, actual returns would be lower. PORTFOLIO BREAKDOWN % OF NET ASSETS - ----------------------------------------------------- Energy 99.5% - ----------------------------------------------------- Total Investments 99.5% Other Assets in excess of Liabilities 0.5% - ----------------------------------------------------- NET ASSETS 100.0% - ----------------------------------------------------- % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ----------------------------------------------------- Canada 100.0% - ----------------------------------------------------- % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ----------------------------------------------------- Canadian Dollar 97.1% United States Dollar 2.9% - ----------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ----------------------------------------------------- Canadian Oil Sands Trust 7.9% Suncor Energy, Inc. 7.4% Baytex Energy Trust 6.9% Penn West Energy Trust 6.8% Ivanhoe Energy, Inc. 5.9% Imperial Oil Ltd. 5.2% Canadian Natural Resources Ltd. 5.0% OPTI Canada, Inc. 4.5% UTS Energy Corp. 4.2% Enerplus Resources Fund 4.2% - ----------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com. The above summaries are provided for informational purposes only, and should not be viewed as recommendations. 24 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued CRO | Claymore/Zacks Country Rotation ETF FUND STATISTICS - ------------------------------------------------------- Share Price $16.83 Net Asset Value $16.79 Premium/Discount to NAV 0.24% Net Assets ($000) $6,714 - ------------------------------------------------------- TOTAL RETURNS - ------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 7/11/07) MONTHS YEAR (ANNUALIZED) - ------------------------------------------------------- CLAYMORE/ZACKS COUNTRY ROTATION ETF NAV 18.91% 38.77% -13.59% Market 18.52% 38.09% -13.51% - ------------------------------------------------------- Zacks Country Rotation Index 19.40% 40.56% -12.30% - ------------------------------------------------------- MSCI EAFE Index 19.65% 37.48% -12.63% - ------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE,WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS.FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES,PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED,MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the ETF at the initial share price of $25.08 per share for share price returns or initial net asset value (NAV) of $25.08 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 3.06%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.70%, while the Fund's annualized gross operating expense ratio was determined to be 2.98% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.65% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.65% . Without this expense cap, actual returns would be lower. % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ----------------------------------------------------- Japan 24.0% China 17.7% Singapore 15.7% Australia 11.7% United Kingdom 9.0% Bermuda 7.5% Spain 3.3% Sweden 2.8% Cayman Islands 2.1% Switzerland 2.0% France 1.1% Isle of Man 1.1% United States 1.0% Mauritius 1.0% - ----------------------------------------------------- % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ----------------------------------------------------- Hong Kong Dollar 25.8% Japanese Yen 24.0% Singapore Dollar 19.2% Australian Dollar 11.7% Pound Sterling 8.7% All other currencies 10.6% - ----------------------------------------------------- PORTFOLIO BREAKDOWN % OF NET ASSETS - ----------------------------------------------------- Financials 35.0% Industrials 17.6% Consumer Discretionary 10.6% Consumer Staples 8.1% Utilities 6.8% Information Technology 5.6% Telecommunication Services 4.6% Materials 4.6% Health Care 3.1% Energy 2.9% Exchange Traded Funds 0.8% - ----------------------------------------------------- Total Investments 99.7% Other Assets in excess of Liabilities 0.3% - ----------------------------------------------------- NET ASSETS 100.0% - ----------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ----------------------------------------------------- Noble Group Ltd. 1.4% Genting Singapore PLC 1.1% Li & Fung Ltd. 1.1% United Overseas Bank Ltd. 1.0% BOC Hong Kong Holdings Ltd. 1.0% Golden Agri-Resources Ltd. 1.0% Olam International Ltd. 1.0% CapitaMall Trust 0.9% DBS Group Holdings Ltd. 0.9% Ascendas Real Estate Investment Trust 0.9% - ----------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com.The above summaries are provided for informational purposes only, and should not be viewed as recommendations. Semiannual Report | November 30, 2009 | 25 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued HGI | Claymore/Zacks International Multi-Asset Income Index ETF FUND STATISTICS - ---------------------------------------------------------- Share Price $17.72 Net Asset Value $17.38 Premium/Discount to NAV 1.96% Net Assets ($000) $34,767 - ---------------------------------------------------------- TOTAL RETURNS - ---------------------------------------------------------- SINCE SIX ONE INCEPTION (INCEPTION 7/11/07) MONTHS YEAR (ANNUALIZED) - ---------------------------------------------------------- CLAYMORE/ZACKS INTERNATIONAL MULTI-ASSET INCOME INDEX ETF NAV 23.65% 53.88% -10.00% Market 24.95% 59.99% -9.28% - ---------------------------------------------------------- Zacks International Multi-Asset Income Index 23.70% 53.01% -9.64% - ---------------------------------------------------------- MSCI EAFE Index 19.65% 37.48% -12.63% - ---------------------------------------------------------- PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMP- TION OF FUND SHARES IS NOT REFLECTED IN THE TOTAL RETURNS. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT WWW.CLAYMORE.COM. THE INVESTMENT RETURN AND PRIN- CIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH CHANGES IN THE MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Since inception returns assume a purchase of the Fund at the initial share price of $24.98 per share for share price returns or initial net asset value (NAV) of $24.98 per share for NAV returns. Returns for periods of less than one year are not annualized. The Fund's total annual operating expense ratio was 2.14%, per the most recent prospectus, gross of any fee waivers or expense reimbursements. In the Financial Highlights section of this Semiannual Report, the Fund's annualized net operating expense ratio was determined to be 0.70% while the Fund's annualized gross operating expense ratio was determined to be 1.18% . There is a contractual fee waiver currently in place for this Fund through December 31, 2012 to the extent necessary in keeping the Fund's operating expense ratio from exceeding 0.65% of average net assets per year. Some expenses fall outside of this expense cap and actual expenses may be higher than 0.65% . Without this expense cap, actual returns would be lower. % OF TOTAL COUNTRY BREAKDOWN INVESTMENTS - ----------------------------------------------------- United Kingdom 18.4% Canada 10.7% United States 10.2% France 8.1% China 5.7% Mexico 4.9% Japan 4.6% Germany 4.1% Netherlands 3.9% Brazil 3.3% Australia 3.1% Switzerland 2.7% Chile 2.3% Taiwan 2.1% Luxembourg 1.8% Spain 1.7% Columbia 1.4% Greece 1.4% Sweden 1.2% Israel 1.1% Finland 0.8% India 0.8% Norway 0.8% South Africa 0.8% Italy 0.7% Portugal 0.7% Turkey 0.7% Singapore 0.6% Austria 0.5% Bermuda 0.4% Jersey 0.3% Argentina 0.2% - ----------------------------------------------------- PORTFOLIO BREAKDOWN % OF NET ASSETS - ----------------------------------------------------- Energy 12.1% Financials 9.6% Telecommunication Services 9.3% Consumer Staples 9.2% Industrials 8.7% Materials 8.0% Consumer Discretionary 6.1% Information Technology 5.8% Health Care 5.7% Utilities 4.5% - ----------------------------------------------------- Total Common Stock 79.0% - ----------------------------------------------------- Closed End Funds 9.9% Income Trusts 6.2% Preferred Stock 4.6% - ----------------------------------------------------- Total Investments 99.7% - ----------------------------------------------------- Other Assets in Excess of Liabilities 0.3% - ----------------------------------------------------- NET ASSETS 100.0% - ----------------------------------------------------- 26 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued HGI | Claymore/Zacks International Multi-Asset Income Index ETF (continued) % OF TOTAL CURRENCY DENOMINATION INVESTMENTS - ----------------------------------------------------------- United States Dollar 39.3% Euro 22.1% Pound Sterling 18.1% Hong Kong Dollar 5.1% Japanese Yen 4.6% Australian Dollar 3.3% Swiss Franc 2.7% Canadian Dollar 2.2% Swedish Krona 1.2% Norwegian Krone 0.8% Singapore Dollar 0.6% - ----------------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS - ----------------------------------------------------------- Penn West Energy Trust 3.4% Enerplus Resources Fund 2.8% Grupo Aeroportuario del Sureste SAB de CV, ADR 1.9% BanColombia SA, ADR 1.4% Ladbrokes PLC 1.4% Telecomunicacoes de Sao Paulo SA, ADR 1.4% BT Group PLC 1.3% Koninklijke DSM NV 1.3% Yanzhou Coal Mining Co. Ltd. - Class H 1.2% Rexam PLC 1.2% - ----------------------------------------------------------- Portfolio breakdown is shown as a percentage of net assets. Country breakdown, currency denomination and holdings are shown as a percentage of total investments. All are subject to change daily. For more current Fund information, please visit www.claymore.com. The above summaries are provided for informational purposes only, and should not be viewed as recommendations. Semiannual Report | November 30, 2009 | 27 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued HISTORICAL PREMIUM/DISCOUNT DATA The tables that follow present information about the differences between the daily market price on secondary markets for shares of a Fund and that Fund's net asset value ("NAV"). NAV is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The"Market Price" of each Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of such Fund is listed for trading, as of the time that the Fund's NAV is calculated. Each Fund's Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand. Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV. The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five years (or since the Fund's inception date if the Fund has been in existence for less than five years). The inception date for each Fund is disclosed at the end of the Historical Premium/Discount Data section. Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results. TAO | Claymore/AlphaShares China Real Estate ETF(6) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 103 20.93% Between 1.5% and 2.0% 42 8.54% Between 1.0% and 1.5% 42 8.54% Between 0.5% and 1.0% 57 11.58% Between -0.5% and 0.5% 92 18.70% Between -0.5% and -1.0% 44 8.94% Between -1.0% and -1.5% 32 6.50% Between -1.5% and -2.0% 20 4.07% Below -2.0% 60 12.20% - ----------------------------------------------- HAO | Claymore/AlphaShares China Small Cap Index ETF(7) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 101 21.77% Between 1.5% and 2.0% 49 10.56% Between 1.0% and 1.5% 53 11.42% Between 0.5% and 1.0% 52 11.21% Between -0.5% and 0.5% 92 19.83% Between -0.5% and -1.0% 40 8.62% Between -1.0% and -1.5% 15 3.23% Between -1.5% and -2.0% 17 3.66% Below -2.0% 45 9.70% - ----------------------------------------------- FRN | Claymore/BNY Mellon Frontier Markets ETF(8) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 125 33.69% Between 1.5% and 2.0% 32 8.63% Between 1.0% and 1.5% 49 13.21% Between 0.5% and 1.0% 37 9.97% Between -0.5% and 0.5% 50 13.48% Between -0.5% and -1.0% 15 4.04% Between -1.0% and -1.5% 16 4.31% Between -1.5% and -2.0% 17 4.58% Below -2.0% 30 8.09% - ----------------------------------------------- EXB | Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF(1) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 7 1.14% Between 1.5% and 2.0% 2 0.32% Between 1.0% and 1.5% 26 4.24% Between 0.5% and 1.0% 89 14.52% Between -0.5% and 0.5% 380 61.99% Between -0.5% and -1.0% 50 8.16% Between -1.0% and -1.5% 28 4.57% Between -1.5% and -2.0% 15 2.45% Below -2.0% 16 2.61% - ----------------------------------------------- 28 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FUND SUMMARY & PERFORMANCE (unaudited) continued CUT | Claymore/Beacon Global Timber Index ETF(5) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 19 3.67% Between 1.5% and 2.0% 20 3.86% Between 1.0% and 1.5% 61 11.78% Between 0.5% and 1.0% 115 22.20% Between -0.5% and 0.5% 205 39.58% Between -0.5% and -1.0% 28 5.40% Between -1.0% and -1.5% 32 6.18% Between -1.5% and -2.0% 17 3.28% Below -2.0% 21 4.05% - ----------------------------------------------- SEA | Claymore/Delta Global Shipping Index ETF(9) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 17 5.31% Between 1.5% and 2.0% 13 4.06% Between 1.0% and 1.5% 31 9.69% Between 0.5% and 1.0% 49 15.32% Between -0.5% and 0.5% 144 45.00% Between -0.5% and -1.0% 28 8.75% Between -1.0% and -1.5% 17 5.31% Between -1.5% and -2.0% 8 2.50% Below -2.0% 13 4.06% - ----------------------------------------------- ROB | Claymore/Robb Report Global Luxury Index ETF(4) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 30 5.10% Between 1.5% and 2.0% 12 2.04% Between 1.0% and 1.5% 35 5.95% Between 0.5% and 1.0% 91 15.48% Between -0.5% and 0.5% 259 44.05% Between -0.5% and -1.0% 67 11.40% Between -1.0% and -1.5% 42 7.14% Between -1.5% and -2.0% 22 3.74% Below -2.0% 30 5.10% - ----------------------------------------------- ENY | Claymore/SWM Canadian Energy Income Index ETF(2) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 39 6.40% Between 1.5% and 2.0% 17 2.79% Between 1.0% and 1.5% 45 7.39% Between 0.5% and 1.0% 84 13.79% Between -0.5% and 0.5% 330 54.19% Between -0.5% and -1.0% 62 10.18% Between -1.0% and -1.5% 13 2.14% Between -1.5% and -2.0% 8 1.31% Below -2.0% 11 1.81% - ----------------------------------------------- CRO | Claymore/Zacks Country Rotation ETF(3) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 40 6.62% Between 1.5% and 2.0% 29 4.80% Between 1.0% and 1.5% 56 9.27% Between 0.5% and 1.0% 90 14.90% Between -0.5% and 0.5% 215 35.60% Between -0.5% and -1.0% 80 13.25% Between -1.0% and -1.5% 40 6.62% Between -1.5% and -2.0% 26 4.30% Below -2.0% 28 4.64% - ----------------------------------------------- HGI | Claymore/Zacks International Multi-Asset Income Index ETF(3) NUMBER PERCENTAGE PREMIUM/DISCOUNT RANGE OF DAYS OF TOTAL DAYS - ----------------------------------------------- Greater than 2.0% 53 8.78% Between 1.5% and 2.0% 38 6.29% Between 1.0% and 1.5% 71 11.75% Between 0.5% and 1.0% 101 16.72% Between -0.5% and 0.5% 183 30.30% Between -0.5% and -1.0% 54 8.94% Between -1.0% and -1.5% 43 7.12% Between -1.5% and -2.0% 21 3.48% Below -2.0% 40 6.62% - ----------------------------------------------- 1 Commenced operations June 27, 2007. 2 Commenced operations July 3, 2007. 3 Commenced operations July 11, 2007. 4 Commenced operations July 30, 2007. 5 Commenced operations November 9, 2007 6 Commenced operations December 18, 2007. 7 Commenced operations January 30, 2008. 8 Commenced operations June 12, 2008. 9 Commenced operations August 25, 2008. Semiannual Report | November 30, 2009 | 29 Claymore Exchange-Traded Fund Trust 2 Overview of FUND EXPENSES | AS OF NOVEMBER 30, 2009 (unaudited) As a shareholder of Claymore/AlphaShares China Real Estate ETF; Claymore/AlphaShares China Small Cap Index ETF; Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF; Claymore/Beacon Global Timber Index ETF; Claymore/BNY Mellon Frontier Markets ETF; Claymore/Delta Global Shipping Index ETF; Claymore/Robb Report Global Luxury Index ETF; Claymore/SWM Canadian Energy Income Index ETF; Claymore/Zacks Country Rotation ETF; and Claymore/Zacks International Multi-Asset Income Index ETF, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six month period ended November 30, 2009. ACTUAL EXPENSE The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or contingent deferred sales charges. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
ANNUALIZED EXPENSE EXPENSES BEGINNING ENDING RATIO FOR THE PAID DURING ACCOUNT VALUE ACCOUNT VALUE SIX MONTHS ENDED PERIOD(1) - --------------------------------------------------------------------------------------------------------------------- 6/01/09- 6/01/09 11/30/09 11/30/09 11/30/09 - --------------------------------------------------------------------------------------------------------------------- CLAYMORE/ALPHASHARES CHINA REAL ESTATE ETF(2) Actual $ 1,000.00 $ 1,108.48 0.70% $ 3.70 Hypothetical (5% annual return before expenses) 1,000.00 1,021.56 0.70% 3.55 CLAYMORE/ALPHASHARES CHINA SMALL CAP INDEX ETF(2) Actual 1,000.00 1,252.17 0.75% 4.23 Hypothetical (5% annual return before expenses) 1,000.00 1,021.31 0.75% 3.80 CLAYMORE/BEACON GLOBAL EXCHANGES, BROKERS & ASSET MANAGERS INDEX ETF(2) Actual 1,000.00 1,077.85 0.70% 3.65 Hypothetical (5% annual return before expenses) 1,000.00 1,021.56 0.70% 3.55 CLAYMORE/BEACON GLOBAL TIMBER INDEX ETF(2) Actual 1,000.00 1,200.96 0.70% 3.86 Hypothetical (5% annual return before expenses) 1,000.00 1,021.56 0.70% 3.55 CLAYMORE/BNY MELLON FRONTIER MARKETS ETF(2) Actual 1,000.00 1,263.63 0.71% 4.03 Hypothetical (5% annual return before expenses) 1,000.00 1,021.51 0.71% 3.60 CLAYMORE/DELTA GLOBAL SHIPPING INDEX ETF(2) Actual 1,000.00 1,024.06 0.74% 3.76 Hypothetical (5% annual return before expenses) 1,000.00 1,021.36 0.74% 3.75 CLAYMORE/ROBB REPORT GLOBAL LUXURY INDEX ETF(2) Actual 1,000.00 1,307.10 0.75% 4.34 Hypothetical (5% annual return before expenses) 1,000.00 1,021.31 0.75% 3.80 CLAYMORE/SWM CANADIAN ENERGY INCOME INDEX ETF(2) Actual 1,000.00 1,188.10 0.70% 3.84 Hypothetical (5% annual return before expenses) 1,000.00 1,021.56 0.70% 3.55 - ---------------------------------------------------------------------------------------------------------------------
30 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | OVERVIEW OF FUND EXPENSES (unaudited) continued
ANNUALIZED EXPENSE EXPENSES BEGINNING ENDING RATIO FOR THE PAID DURING ACCOUNT VALUE ACCOUNT VALUE SIX MONTHS ENDED PERIOD(1) - ----------------------------------------------------------------------------------------------------------------------------- 6/01/09 11/30/09 11/30/09 6/01/09 - 11/30/09 - ----------------------------------------------------------------------------------------------------------------------------- CLAYMORE/ZACKS COUNTRY ROTATION ETF(2) Actual $ 1,000.00 $ 1,189.10 0.70% $ 3.84 Hypothetical (5% annual return before expenses) 1,000.00 1,021.56 0.70% 3.55 CLAYMORE/ZACKS INTERNATIONAL MULTI-ASSET INCOME INDEX ETF(2) Actual 1,000.00 1,236.48 0.70% 3.92 Hypothetical (5% annual return before expenses) 1,000.00 1,021.56 0.70% 3.55 - -----------------------------------------------------------------------------------------------------------------------------
1 Actual and hypothetical expenses are calculated using the annualized expense ratio.This represents the ongoing expenses of the Fund as a percentage of net assets for the six-months ended November 30, 2009. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value over the period; then multiplying the result by 183/365. 2 The expense ratios reflect an expense waiver. Please see the Notes to Financial Statements for more information. Assumes all dividends and distributions were reinvested. Semiannual Report | November 30, 2009 | 31 Claymore Exchange-Traded Fund Trust 2 Portfolio of INVESTMENTS | NOVEMBER 30, 2009 (unaudited) TAO | Claymore/AlphaShares China Real Estate ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 99.8% CHINA -- 98.8% 1,286,000 Agile Property Holdings Ltd. $ 1,772,157 1,670,000 Champion Real Estate Investment Trust -- REIT 685,225 245,000 Cheung Kong Holdings Ltd. 3,079,037 1,628,000 China Overseas Land & Investment Ltd. 3,499,607 1,494,000 China Resources Land Ltd. 3,466,013 604,000 Chinese Estates Holdings Ltd. 1,017,818 5,213,000 Country Garden Holdings Co. 1,970,812 41,098 E-House China Holdings Ltd., ADR (a) 799,356 2,270,000 Franshion Properties China Ltd. 784,966 271,000 Great Eagle Holdings Ltd. 708,083 3,422,000 Guangzhou Investment Co. Ltd. 966,972 920,400 Guangzhou R&F Properties Co. Ltd. -- Class H 1,612,747 755,000 Hang Lung Group Ltd. 3,696,993 1,021,000 Hang Lung Properties Ltd. 3,728,225 592,000 Henderson Land Development Co. Ltd. 4,178,293 890,000 Hongkong Land Holdings Ltd. 4,405,500 637,500 Hopewell Holdings Ltd. 2,011,171 546,000 Hopson Development Holdings Ltd. 907,399 556,000 Hysan Development Co. Ltd. 1,596,227 607,000 Kerry Properties Ltd. 3,081,934 993,000 KWG Property Holding Ltd. 748,259 1,391,000 Link Real Estate Investment Trust (The) -- REIT 3,503,457 238,000 Neo-China Land Group Holdings Ltd. (b) 78,001 1,525,200 New World China Land Ltd. 592,357 2,155,000 New World Development Ltd. 4,432,263 4,024,000 Renhe Commercial Holdings Co. Ltd. 804,784 1,678,000 Shenzhen Investment Ltd. 742,636 1,285,000 Shimao Property Holdings Ltd. 2,440,624 1,823,300 Shui On Land Ltd. 1,075,138 854,000 Shun Tak Holdings Ltd. 528,919 2,138,000 Sino Land Co. Ltd. 4,060,742 2,960,000 Sino-Ocean Land Holdings Ltd. 2,952,304 1,690,500 SOHO China Ltd. 909,580 270,000 Sun Hung Kai Properties Ltd. 4,002,890 329,500 Swire Pacific Ltd. -- Class A 3,781,737 867,500 Swire Pacific Ltd. -- Class B 1,820,036 868,000 Wharf Holdings Ltd. 4,681,509 749,000 Wheelock & Co. Ltd. 2,420,914 - -------------------------------------------------------------------------------- 83,544,685 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- SINGAPORE -- 1.0% 518,000 Yanlord Land Group Ltd. $ 822,727 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.8% (Cost $74,478,427) 84,367,412 Other Assets in excess of Liabilities -- 0.2% 149,690 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 84,517,102 ================================================================================ ADR -- American Depositary Receipt REIT -- Real Estate Investment Trust (a) Non-income producing security. (b) Security is valued in accordance with Fair Valuation procedures established in good faith by the Board of Trustees. The total market value of such securities is $78,001 which represents 0.1% of net assets. See notes to financial statements. 32 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued HAO | Claymore/AlphaShares China Small Cap Index ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 100.0% CONSUMER DISCRETIONARY -- 16.2% 2,476,000 AviChina Industry & Technology Co. (a) $ 1,015,939 5,281,000 China Dongxiang Group Co. 3,856,759 3,084,000 China Hongxing Sports Ltd. 389,633 4,624,000 China Travel International Investment Hong Kong Ltd. 1,240,998 115,622 Ctrip.com International Ltd., ADR (a) 8,480,874 8,028,000 Denway Motors Ltd. 4,930,650 4,926,000 Dongfeng Motor Group Co. Ltd. 7,563,647 138,379 Focus Media Holding Ltd., ADR (a) 1,738,040 790,000 Golden Eagle Retail Group Ltd. 1,736,947 39,637 Home Inns & Hotels Management, Inc., ADR (a) 1,392,448 914,000 Intime Department Store Group Co. Ltd. 765,386 1,241,000 Li Ning Co. Ltd. 4,075,205 888,000 Minth Group Ltd. 1,260,363 65,577 New Oriental Education & Technology Group, ADR (a) 4,676,296 2,248,500 Parkson Retail Group Ltd. 3,742,592 584,000 Ports Design Ltd. 1,586,189 2,416,000 Shanghai Jin Jiang International Hotels Group Co. Ltd. 729,462 - -------------------------------------------------------------------------------- 49,181,428 - -------------------------------------------------------------------------------- CONSUMER STAPLES -- 7.3% 106,933 American Oriental Bioengineering, Inc. (a) 428,801 3,928,640 Chaoda Modern Agriculture Holdings Ltd. 3,452,067 2,826,000 China Agri-Industries Holdings Ltd. 3,573,453 1,230,000 China Foods Ltd. 1,015,722 831,000 China Green Holdings Ltd. 802,034 896,500 China Huiyuan Juice Group Ltd. 552,927 1,609,000 China Yurun Food Group Ltd. 3,944,569 2,410,000 Global Bio-Chem Technology Group Co. Ltd. 547,293 593,000 Hsu Fu Chi International Ltd. 856,225 366,000 Lianhua Supermarket Holdings Co. Ltd. 870,827 1,038,000 People's Food Holdings Ltd. 445,880 2,716,000 Pine Agritech Ltd. (a) 313,728 528,000 Tsingtao Brewery Co. Ltd. 2,663,794 1,634,000 Uni-President China Holdings Ltd. 1,115,315 971,000 Wumart Stores, Inc. 1,603,685 - -------------------------------------------------------------------------------- 22,186,320 - -------------------------------------------------------------------------------- ENERGY -- 4.5% 2,644,000 China Oilfield Services Ltd. 3,070,392 3,358,000 CNPC Hong Kong Ltd. 3,773,886 3,390,000 Yanzhou Coal Mining Co. Ltd. 6,753,624 - -------------------------------------------------------------------------------- 13,597,902 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- FINANCIALS -- 15.3% 2,468,000 Agile Property Holdings Ltd. $ 3,400,997 1,798,000 Beijing Capital Land Ltd. 951,182 1,272,000 China Everbright Ltd. 3,023,198 1,236,800 China Taiping Insurance Holdings Co. Ltd. (a) 4,787,520 9,892,000 Country Garden Holdings Co. 3,739,742 78,098 E-House China Holdings Ltd., ADR (a) 1,519,006 4,290,000 Franshion Properties China Ltd. 1,483,481 1,079,500 Greentown China Holdings Ltd. 1,704,881 6,498,000 Guangzhou Investment Co. Ltd. 1,836,173 1,741,600 Guangzhou R&F Properties Co. Ltd. 3,051,674 1,879,500 KWG Property Holding Ltd. 1,416,267 3,068,000 PICC Property & Casualty Co. Ltd. (a) 2,474,146 7,652,000 Renhe Commercial Holdings Co. Ltd. 1,530,370 3,164,000 Shenzhen Investment Ltd. 1,400,298 2,439,500 Shimao Property Holdings Ltd. 4,633,386 5,627,000 Sino-Ocean Land Holdings Ltd. 5,612,370 3,205,500 Soho China Ltd. 1,724,732 6,574,000 United Energy Group Ltd. (a) 360,503 990,000 Yanlord Land Group Ltd. (Singapore) 1,572,393 - -------------------------------------------------------------------------------- 46,222,319 - -------------------------------------------------------------------------------- HEALTH CARE -- 3.5% 40,546 China Medical Technologies, Inc., ADR 535,613 1,280,000 China Pharmaceutical Group Ltd. 723,392 130,177 Mindray Medical International Ltd., ADR 3,941,760 896,000 Shandong Weigao Group Medical Polymer Co. Ltd. 3,167,732 46,227 Simcere Pharmaceutical Group, ADR (a) 367,042 101,772 WuXi PharmaTech Cayman, Inc., ADR (a) 1,773,886 - -------------------------------------------------------------------------------- 10,509,425 - -------------------------------------------------------------------------------- INDUSTRIALS -- 22.4% 3,774,000 Air China Ltd. (a) 2,722,097 852,000 Anhui Expressway Co. 573,852 3,236,000 Beijing Capital International Airport Co. Ltd. (a) 2,246,367 5,154,000 China Eastern Airlines Corp. Ltd. (a) 1,921,906 2,379,000 China Everbright International Ltd. 1,135,759 2,221,000 China National Materials Co. Ltd. 1,630,612 6,459,000 China Shipping Container Lines Co. Ltd. (a) 2,375,199 2,246,000 China Shipping Development Co. Ltd. 3,297,933 2,812,000 China South Locomotive and Rolling Stock Corp. 1,923,008 4,255,000 China Southern Airlines Co. Ltd. (a) 1,421,966 1,866,000 China State Construction International Holdings Ltd. 799,355 4,430,000 Citic Pacific Ltd. 11,717,838 2,810,000 Citic Resources Holdings Ltd. (a) 826,668 1,926,000 COSCO Pacific Ltd. 2,683,922 See notes to financial statements. Semiannual Report | November 30, 2009 | 33 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued HAO | Claymore/AlphaShares China Small Cap Index ETF (continued) NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- INDUSTRIALS (CONTINUED) 293,200 Dongfang Electric Corp. Ltd. $ 1,539,743 2,452,000 Guangshen Railway Co. Ltd. 964,962 1,338,000 GZI Transportation Ltd. 540,369 1,168,000 Harbin Power Equipment Co. Ltd. 1,067,004 2,100,000 Jiangsu Expressway Co. Ltd. 1,861,512 2,284,000 Lonking Holdings Ltd. 1,423,420 5,374,000 Shanghai Electric Group Co. Ltd. 2,523,998 893,000 Shanghai Industrial Holdings Ltd. 4,470,675 1,274,000 Shenzhen Expressway Co. Ltd. 575,344 15,822,500 Shenzhen International Holdings 1,184,112 1,532,000 Sichuan Expressway Co. Ltd. 780,811 2,670,000 Sinotrans Ltd. 692,464 2,198,000 Sinotrans Shipping Ltd. 1,020,987 1,136,500 Sinotruk Hong Kong Ltd. 1,352,042 188,065 Suntech Power Holdings Co. Ltd., ADR (a) 2,811,572 866,000 Tianjin Development Holdings 592,221 359,000 Weichai Power Co. Ltd. 3,003,961 2,501,000 Yangzijiang Shipbuilding Holdings Ltd. (Singapore) 2,220,864 2,456,000 Zhejiang Expressway Co. Ltd. 2,398,911 795,000 Zhuzhou CSR Times Electric Co. Ltd. 1,602,279 - -------------------------------------------------------------------------------- 67,903,733 - -------------------------------------------------------------------------------- INFORMATION TECHNOLOGY -- 17.0% 1,124,000 AAC Acoustic Technologies Holdings, Inc. 1,569,219 2,212,000 Alibaba.com Ltd. (a) 5,051,825 55,181 AsiaInfo Holdings, Inc. (a) 1,356,901 591,000 Byd Co. Ltd. (a) 5,166,384 1,326,500 BYD Electronic International Co. Ltd. (a) 1,095,411 65,227 China Digital TV Holding Co. Ltd., ADR 393,319 789,000 Digital China Holdings Ltd. 928,457 163,183 Giant Interactive Group, Inc., ADR 1,147,176 1,007,500 Kingboard Chemical Holdings Ltd. 4,049,422 892,000 Kingsoft Corp Ltd. 667,548 6,498,000 Lenovo Group Ltd. 3,747,806 223,013 Netease.com, ADR (a) 8,528,017 37,598,000 Semiconductor Manufacturing International Corp. (a) 2,328,605 62,184 Shanda Interactive Entertainment Ltd., ADR (a) 3,099,250 93,270 Sina Corp. (a) 4,221,400 51,535 Sohu.com, Inc. (a) 2,873,592 17,018 The9 Ltd., ADR 128,486 2,196,000 TPV Technology Ltd. 1,255,238 1,066,000 Travelsky Technology Ltd. 1,001,333 501,308 ZTE Corp. 2,839,612 - -------------------------------------------------------------------------------- 51,449,001 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- MATERIALS -- 12.0% 1,890,000 Angang Steel Co. Ltd. $ 3,814,068 716,500 Asia Cement China Holdings Corp. 408,628 3,076,000 China BlueChemical Ltd. 1,635,210 2,300,000 China Molybdenum Co. Ltd. 1,905,253 2,326,000 China National Building Material Co. Ltd. 4,477,838 3,259,000 China Shanshui Cement Group Ltd. 2,140,386 391,000 FerroChina Ltd. (a) (b) -- 2,830,000 Hunan Non-Ferrous Metal Corp. Ltd. (a) 1,110,069 2,385,000 Jiangxi Copper Co. Ltd. 6,087,018 722,000 Lee & Man Paper Manufacturing Ltd. 1,846,421 2,972,000 Maanshan Iron & Steel (a) 2,013,251 2,314,000 Nine Dragons Paper Holdings Ltd. 4,221,849 6,176,000 Shougang Concord International Enterprises Co. Ltd. 1,203,301 3,028,000 Sinofert Holdings Ltd. 1,547,180 3,990,000 Sinopec Shanghai Petrochemical Co. Ltd. (a) 1,559,931 2,390,000 Sinopec Yizheng Chemical Fibre Co. Ltd. (a) 669,187 812,000 Zhaojin Mining Industry Co. Ltd. 1,529,674 - -------------------------------------------------------------------------------- 36,169,264 - -------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 0.6% 3,410,000 China Communications Services Corp. Ltd. 1,742,366 - -------------------------------------------------------------------------------- UTILITIES -- 1.2% 2,774,000 China Power International Development Ltd. (a) 748,071 4,148,000 Guangdong Investment Ltd. 2,306,778 2,450,000 Huadian Power International Co. (a) 692,309 - -------------------------------------------------------------------------------- 3,747,158 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100.0% (Cost $261,174,029) 302,708,916 Other Assets in excess of Liabilities -- 0.0% 40,676 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 302,749,592 ================================================================================ ADR -- American Depositary Receipt (a) Non-income producing security. (b) Security is valued in accordance with Fair Valuation procedures established in good faith by the Board of Trustees. The total market value of such securities is $0 which represents 0.0% of net assets. Securities are classified by sectors that represent broad groupings of related industries. See notes to financial statements. 34 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued EXB | Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 98.6% AUSTRALIA -- 2.4% 2,509 ASX Ltd. $ 75,926 - -------------------------------------------------------------------------------- BERMUDA -- 1.9% 2,415 Invesco Ltd. 53,734 1,000 MF Global Ltd. (a) 6,290 - -------------------------------------------------------------------------------- 60,024 - -------------------------------------------------------------------------------- CANADA -- 2.7% 423 AGF Management Ltd. -- Class B 6,713 925 CI Financial Corp. 16,934 552 GMP Capital, Inc. 6,388 614 IGM Financial, Inc. 23,692 1,092 TMX Group, Inc. 30,960 331 Uranium Participation Corp. (a) 2,066 - -------------------------------------------------------------------------------- 86,753 - -------------------------------------------------------------------------------- CAYMAN ISLANDS -- 0.0% 24,000 Get Nice Holdings Ltd. 1,486 - -------------------------------------------------------------------------------- GERMANY -- 4.8% 1,844 Deutsche Boerse AG 153,623 - -------------------------------------------------------------------------------- HONG KONG -- 5.1% 9,300 Hong Kong Exchanges and Clearing Ltd. 165,837 - -------------------------------------------------------------------------------- ICELAND -- 0.0% 241,643 Straumur-Burdaras Fjarfestingabanki hf (a) (b) -- - -------------------------------------------------------------------------------- ITALY -- 0.3% 622 Azimut Holding SpA 8,124 - -------------------------------------------------------------------------------- JAPAN -- 10.5% 16,000 Daiwa Securities Group, Inc. 86,366 200 Jafco Co. Ltd. 4,817 3 kabu.com Securities Co. Ltd. 2,922 1,100 Matsui Securities Co. Ltd. 7,470 5,000 Mizuho Securities Co. Ltd. 16,368 12 Monex Group, Inc. 4,423 22,600 Nomura Holdings, Inc. 163,181 2,000 Okasan Securities Group, Inc. 10,076 4 Osaka Securities Exchange Co. Ltd. 20,013 94 SBI Holdings, Inc. 15,909 2,000 Tokai Tokyo Financial Holdings 7,104 - -------------------------------------------------------------------------------- 338,649 - -------------------------------------------------------------------------------- MEXICO -- 0.3% 8,700 Bolsa Mexicana de Valores SA de CV (a) 10,922 - -------------------------------------------------------------------------------- NETHERLANDS -- 0.5% 771 BinckBank NV 14,886 - -------------------------------------------------------------------------------- PAKISTAN -- 0.0% 4,100 Jahangir Siddiqui & Co. Ltd. 1,471 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- SINGAPORE -- 2.1% 12,000 Singapore Exchange Ltd. $ 68,094 - -------------------------------------------------------------------------------- SOUTH AFRICA -- 0.3% 1,262 JSE Ltd. 10,239 - -------------------------------------------------------------------------------- SPAIN -- 1.0% 946 Bolsas y Mercados Espanoles SA 33,376 - -------------------------------------------------------------------------------- SWEDEN -- 0.4% 581 Ratos AB -- Class B 14,423 - -------------------------------------------------------------------------------- SWITZERLAND -- 1.8% 386 EFG International AG 6,207 1,200 Julius Baer Group Ltd. 39,612 89 Partners Group Holding AG 10,901 - -------------------------------------------------------------------------------- 56,720 - -------------------------------------------------------------------------------- THAILAND -- 0.1% 10,700 Asia Plus Securities PCL 534 21,100 Country Group Securities PCL (a) 698 2,600 Kim Eng Securities Thailand PCL 939 - -------------------------------------------------------------------------------- 2,171 - -------------------------------------------------------------------------------- UNITED KINGDOM -- 6.7% 5,630 3i Group PLC 24,919 5,821 Aberdeen Asset Management PLC 13,374 2,068 Ashmore Group PLC 8,892 360 Climate Exchange PLC (Isle of Man) (a) 4,537 5,371 ICAP PLC 38,104 2,284 Intermediate Capital Group PLC 10,177 3,155 London Stock Exchange Group PLC 38,962 9,932 Man Group PLC 51,897 733 Schroders PLC 13,822 2,190 Tullett Prebon PLC 11,472 - -------------------------------------------------------------------------------- 216,156 - -------------------------------------------------------------------------------- UNITED STATES -- 57.7% 243 Affiliated Managers Group, Inc. (a) 15,846 1,064 Allied Capital Corp. 3,767 1,660 American Capital Ltd. 4,880 1,480 Ameriprise Financial, Inc. 56,418 959 Apollo Investment Corp. 9,226 579 Ares Capital Corp. 6,728 5,242 Bank of New York Mellon Corp. 139,647 147 BlackRock, Inc. 33,381 117 Calamos Asset Management, Inc. -- Class A 1,230 8,564 Charles Schwab Corp. 156,978 448 CME Group, Inc. 147,047 103 Cohen & Steers, Inc. 1,971 14,461 E*Trade Financial Corp. (a) 23,716 See notes to financial statements. Semiannual Report | November 30, 2009 | 35 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued EXB | Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF (continued) NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- UNITED STATES (CONTINUED) 687 Eaton Vance Corp. $ 20,706 135 Evercore Partners, Inc. -- Class A 4,186 514 Federated Investors, Inc. -- Class B 13,251 610 Fortress Investment Group LLC -- Class A (a) 2,452 868 Franklin Resources, Inc. 93,770 35 GAMCO Investors, Inc. -- Class A 1,608 652 GFI Group, Inc. 3,169 892 GLG Partners, Inc. (a) 2,631 1,041 Goldman Sachs Group, Inc. 176,616 205 Greenhill & Co., Inc. 16,738 1,074 IntercontinentalExchange, Inc. (a) 114,692 438 Investment Technology Group, Inc. (a) 7,994 1,060 Janus Capital Group, Inc. 13,875 1,231 Jefferies Group, Inc. (a) 28,867 304 KBW, Inc. (a) 7,475 946 Knight Capital Group, Inc. -- Class A (a) 13,849 497 LaBranche & Co., Inc. (a) 1,317 943 Legg Mason, Inc. 26,677 517 MarketAxess Holdings, Inc. 6,437 5,291 Morgan Stanley 167,090 2,085 Nasdaq OMX Group, Inc. (a) 38,948 1,401 Northern Trust Corp. 69,350 3,820 NYSE Euronext 96,570 436 optionsXpress Holdings, Inc. 6,671 118 Penson Worldwide, Inc. (a) 1,058 164 Piper Jaffray Cos. (a) 7,109 278 Prospect Capital Corp. 3,025 993 Raymond James Financial, Inc. 24,120 761 SEI Investments Co. 13,325 2,870 State Street Corp. 118,531 303 Stifel Financial Corp. (a) 16,277 246 SWS Group, Inc. 3,060 1,487 T Rowe Price Group, Inc. 72,759 2,532 TD Ameritrade Holding Corp. (a) 49,728 1 Teton Advisors, Inc. -- Class B (a) (b) 1 322 TradeStation Group, Inc. (a) 2,370 499 Waddell & Reed Financial, Inc. -- Class A 14,536 - -------------------------------------------------------------------------------- 1,861,673 - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS -- 98.6% (Cost $4,978,914) 3,180,553 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- MASTER LIMITED PARTNERSHIPS -- 1.3% UNITED STATES -- 1.3% 542 AllianceBernstein Holding L.P. $ 13,713 1,572 Blackstone Group L.P. 21,756 439 Och-Ziff Capital Management Group LLC -- Class A 5,136 - -------------------------------------------------------------------------------- TOTAL MASTER LIMITED PARTNERSHIPS (Cost $52,095) 40,605 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.9% (Cost $5,031,009) 3,221,158 Other Assets in excess of Liabilities -- 0.1% 3,168 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 3,224,326 ================================================================================ AB -- Stock Company AG -- Corporation hf -- Limited Liability Company LLC -- Limited Liability Company L.P. -- Limited Partnership NV -- Publicly Traded Company PCL -- Public Company Limited PLC -- Public Limited Company SA -- Corporation SpA -- Joint Stock Company (a) Non-income producing security. (b) Security is valued in accordance with Fair Valuation procedures established in good faith by the Board of Trustees. The total market value of such securities is $1 which represents 0.0% of net assets. See notes to financial statements. 36 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued CUT | Claymore/Beacon Global Timber Index ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 99.9% AUSTRALIA -- 2.3% 2,610,067 Gunns Ltd. $ 2,162,158 - -------------------------------------------------------------------------------- BERMUDA -- 1.7% 38,562,000 China Grand Forestry Green Resources Group Ltd. (a) 1,567,328 - -------------------------------------------------------------------------------- BRAZIL -- 6.0% 315,810 Fibria Celulose SA -- ADR 5,532,992 - -------------------------------------------------------------------------------- CANADA -- 7.8% 164,494 Canfor Corp. (a) 1,132,773 264,169 Sino-Forest Corp. (a) 4,628,126 48,655 West Fraser Timber Co., Ltd. 1,453,766 - -------------------------------------------------------------------------------- 7,214,665 - -------------------------------------------------------------------------------- FINLAND -- 9.4% 586,489 Stora Enso OYJ -- R Shares 4,481,875 334,656 UPM-Kymmene OYJ 4,255,632 - -------------------------------------------------------------------------------- 8,737,507 - -------------------------------------------------------------------------------- IRELAND -- 4.4% 504,561 Smurfit Kappa Group PLC 4,128,500 - -------------------------------------------------------------------------------- JAPAN -- 17.5% 833,500 Hokuetsu Kishu Paper Co., Ltd. 4,208,863 152,900 Nippon Paper Group, Inc. 4,179,923 907,000 OJI Paper Co., Ltd. 3,874,584 535,700 Sumitomo Forestry Co., Ltd. 4,023,424 - -------------------------------------------------------------------------------- 16,286,794 - -------------------------------------------------------------------------------- PORTUGAL -- 4.5% 1,468,437 Portucel Empresa Produtora de Pasta e Papel SA 4,166,767 - -------------------------------------------------------------------------------- SOUTH AFRICA -- 5.0% 843,660 Mondi Ltd. 4,654,050 - -------------------------------------------------------------------------------- SPAIN -- 2.4% 565,810 Grupo Empresarial Ence SA 2,234,130 - -------------------------------------------------------------------------------- SWEDEN -- 8.7% 155,877 Holmen AB -- B Shares 3,824,888 306,127 Svenska Cellulosa AB -- B Shares 4,204,801 - -------------------------------------------------------------------------------- 8,029,689 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- UNITED STATES -- 30.2% 11,873 Deltic Timber Corp. $ 453,786 27,681 Domtar Corp. (a) 1,561,762 47,449 Greif, Inc. -- Class A 2,650,501 105,878 International Paper Co. 2,694,595 185,576 MeadWestvaco Corp. 5,079,215 83,241 Plum Creek Timber Co., Inc. -- REIT 2,870,982 49,148 Potlatch Corp. -- REIT 1,446,917 98,960 Rayonier, Inc. -- REIT 3,932,670 93,468 Sonoco Products Co. 2,633,928 50,224 Wausau Paper Corp. 509,774 108,057 Weyerhaeuser Co. 4,207,740 - -------------------------------------------------------------------------------- 28,041,870 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.9% (Cost $80,018,900) 92,756,450 Other Assets in excess of Liabilities -- 0.1% 64,897 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 92,821,347 ================================================================================ AB -- Corporation ADR -- American Depositary Receipt OYJ -- Publicly Traded Company PLC -- Public Limited Company REIT -- Real Estate Investment Trust SA -- Corporation (a) Non-income producing security. See notes to financial statements. Semiannual Report | November 30, 2009 | 37 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued FRN | Claymore/BNY Mellon Frontier Markets ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 95.1% ARGENTINA -- 5.6% 12,890 Banco Macro SA -- ADR $ 351,768 13,188 Cresud SACIF y A -- ADR 184,761 7,443 Empresa Distribuidora Y Comercializadora Norte -- ADR (a) 51,580 28,143 Grupo Financiero Galicia SA -- ADR (a) 150,565 8,822 IRSA Inversiones y Representaciones SA -- GDR 72,605 10,273 Petrobras Energia SA -- ADR 172,175 25,982 Telecom Argentina SA -- ADR (a) 420,389 - -------------------------------------------------------------------------------- 1,403,843 - -------------------------------------------------------------------------------- CHILE -- 28.3% 5,938 Banco de Chile -- ADR 307,885 13,517 Banco Santander Chile -- ADR 821,834 7,747 Cia Cervecerias Unidas SA -- ADR 279,279 6,986 CorpBanca SA -- ADR 256,037 35,121 Empresa Nacional de Electricidad SA -- ADR 1,698,803 82,622 Enersis SA -- ADR 1,585,516 45,379 Lan Airlines SA -- ADR 699,744 28,815 Sociedad Quimica y Minera de Chile SA -- ADR 1,088,631 7,456 Vina Concha y Toro SA -- ADR 300,626 - -------------------------------------------------------------------------------- 7,038,355 - -------------------------------------------------------------------------------- COLOMBIA -- 6.6% 65,678 Ecopetrol SA -- ADR 1,629,471 - -------------------------------------------------------------------------------- EGYPT -- 13.4% 88,776 Commercial International Bank -- GDR 825,617 41,954 Egyptian Financial Group-Hermes Holding -- GDR 440,517 25,206 Orascom Construction Industries -- GDR 1,027,144 29,612 Orascom Telecom Holding SAE -- GDR 710,688 23,322 Telecom Egypt -- GDR (b) 343,067 - -------------------------------------------------------------------------------- 3,347,033 - -------------------------------------------------------------------------------- GEORGIA -- 0.5% 15,191 Bank of Georgia JSC -- GDR (a) 129,123 - -------------------------------------------------------------------------------- JERSEY -- 0.2% 7,293 KazakhGold Group Ltd. -- GDR (a) 58,344 - -------------------------------------------------------------------------------- KAZAKHSTAN -- 6.1% 38,525 Halyk Savings Bank of Kazakhstan JSC -- GDR (a) 319,757 49,629 KazMunaiGas Exploration Production -- GDR 1,196,059 - -------------------------------------------------------------------------------- 1,515,816 - -------------------------------------------------------------------------------- LEBANON -- 3.4% 33,542 Solidere -- GDR 836,873 - -------------------------------------------------------------------------------- LUXEMBOURG -- 0.6% 11,976 MHP SA -- GDR (a) 137,724 - -------------------------------------------------------------------------------- NIGERIA -- 3.2% 129,927 Guaranty Trust Bank PLC -- GDR 805,546 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- OMAN -- 1.5% 47,449 Bank Muscat SAOG -- GDR (b) $ 379,592 - -------------------------------------------------------------------------------- PAKISTAN- 0.2% 4,301 Oil & Gas Development Co. Ltd. -- GDR (b) 54,795 - -------------------------------------------------------------------------------- PERU -- 6.0% 37,019 Cia de Minas Buenaventura SA -- ADR 1,486,313 - -------------------------------------------------------------------------------- POLAND -- 18.0% 28,462 Bank Pekao SA -- GDR (a) (b) 1,809,329 19,450 KGHM Polska Miedz SA -- GDR 1,497,650 215,347 Telekomunikacja Polska SA -- GDR 1,184,409 - -------------------------------------------------------------------------------- 4,491,388 - -------------------------------------------------------------------------------- QATAR -- 1.4% 93,427 Commercial Bank of Qatar -- GDR (b) 345,680 - -------------------------------------------------------------------------------- UNITED ARAB EMIRATES -- 0.1% 6,631 Kingdom Hotel Investments -- GDR (a) (b) 21,617 - -------------------------------------------------------------------------------- TOTAL COMMON STOCK -- 95.1% (Cost $23,323,172) 23,681,513 - -------------------------------------------------------------------------------- PREFERRED STOCKS -- 4.8% CHILE -- 0.8% 9,941 Embotelladora Andina SA -- Class B Preference Shares -- ADR 186,791 - -------------------------------------------------------------------------------- COLOMBIA -- 4.0% 23,342 BanColombia SA -- Preference Shares -- ADR 1,001,372 - -------------------------------------------------------------------------------- TOTAL PREFERRED STOCK -- 4.8% (Cost $895,839) 1,188,163 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.9% (Cost $24,219,011) 24,869,676 Other Assets in excess of Liabilities -- 0.1% 30,640 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 24,900,316 ================================================================================ ADR -- American Depositary Receipt AS -- Joint Stock Company GDR -- Global Depositary Receipt JSC -- Joint Stock Company PLC -- Public Limited Company SA -- Corporation SAE -- Corporation SAOG -- Joint Stock Company (a) Non-income producing security. (b) Security is valued in accordance with Fair Valuation procedures established in good faith by the Board of Trustees. The total market value of such securities is $2,954,080 which represents 11.9% of net assets. See notes to financial statements. 38 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued SEA | Claymore/Delta Global Shipping Index ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCK -- 95.8% BELGIUM -- 8.4% 146,593 Compagnie Maritime Belge SA $ 4,654,850 239,456 Euronav NV 5,119,385 - -------------------------------------------------------------------------------- 9,774,235 - -------------------------------------------------------------------------------- BERMUDA -- 17.8% 180,488 Frontline Ltd. 4,903,859 275,098 Golar LNG Ltd. 3,457,982 210,744 Knightsbridge Tankers Ltd. 2,752,317 373,267 Ship Finance International Ltd. 4,867,402 278,584 Tsakos Energy Navigation Ltd. 4,635,638 - -------------------------------------------------------------------------------- 20,617,198 - -------------------------------------------------------------------------------- CHINA -- 13.4% 3,204,500 China COSCO Holdings Co. Ltd. -- Class H 4,225,723 7,335,000 China Shipping Container Lines Co. Ltd. -- Class H 2,697,335 2,946,000 China Shipping Development Co. Ltd. -- Class H 4,325,785 5,610,000 Pacific Basin Shipping Ltd. 4,249,040 - -------------------------------------------------------------------------------- 15,497,883 - -------------------------------------------------------------------------------- DENMARK -- 8.5% 124,235 D/S Norden 5,138,028 447,935 Torm A/S 4,699,124 - -------------------------------------------------------------------------------- 9,837,152 - -------------------------------------------------------------------------------- JAPAN -- 8.9% 669,000 Kawasaki Kisen Kaisha Ltd. 1,949,260 446,000 Mitsui OSK Lines Ltd. 2,500,644 957,000 Nippon Yusen KK 2,988,369 1,068,000 Shinwa Kaiun Kaisha Ltd. 2,938,255 - -------------------------------------------------------------------------------- 10,376,528 - -------------------------------------------------------------------------------- LIBERIA -- 2.4% 396,595 Excel Maritime Carriers Ltd. 2,740,471 - -------------------------------------------------------------------------------- MARSHALL ISLANDS -- 16.3% 326,116 Diana Shipping, Inc. 5,071,104 765,823 Navios Maritime Holdings, Inc. 4,426,457 451,202 Seaspan Corp. 4,105,938 220,297 Teekay Corp. 5,287,128 - -------------------------------------------------------------------------------- 18,890,627 - -------------------------------------------------------------------------------- SINGAPORE -- 5.1% 4,620,000 Cosco Corp. Singapore Ltd. 3,568,855 2,170,000 Neptune Orient Lines Ltd. 2,365,592 - -------------------------------------------------------------------------------- 5,934,447 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- UNITED STATES -- 15.0% 120,098 Alexander & Baldwin, Inc. $ 3,668,994 515,423 Eagle Bulk Shipping, Inc. 2,917,294 127,884 Genco Shipping & Trading Ltd. 3,002,716 547,809 General Maritime Corp. 3,873,010 103,678 Overseas Shipholding Group, Inc. 3,971,904 - -------------------------------------------------------------------------------- 17,433,918 - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS -- 95.8% (Cost $108,830,775) 111,102,459 - -------------------------------------------------------------------------------- MASTER LIMITED PARTNERSHIPS -- 4.1% MARSHALL ISLANDS -- 4.1% 193,763 Teekay LNG Partners LP (Cost $3,727,667) 4,720,067 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.9% (Cost $112,558,442) 115,822,526 Other Assets in excess of Liabilities -- 0.1% 92,065 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 115,914,591 ================================================================================ A/S Limited Liability Stock Company KK Joint Stock Company LP Limited Partnership NV Publicly Traded Company SA Corporation See notes to financial statements. Semiannual Report | November 30, 2009 | 39 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued ROB | Claymore/Robb Report Global Luxury Index ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 95.9% BERMUDA -- 4.3% 42,000 Mandarin Oriental International Ltd. $ 53,340 4,500 Orient-Express Hotels Ltd. -- Class A 37,620 112,000 Shangri-La Asia Ltd. 202,897 - -------------------------------------------------------------------------------- 293,857 - -------------------------------------------------------------------------------- BRAZIL -- 1.8% 6,103 Empresa Brasileira de Aeronautica SA, ADR (a) 124,074 - -------------------------------------------------------------------------------- FRANCE -- 28.0% 3,159 Christian Dior SA 320,137 368 Dassault Aviation SA 282,326 1,802 Hermes International 256,205 2,844 LVMH Moet Hennessy Louis Vuitton SA 296,156 3,732 Pernod-Ricard SA 318,197 2,905 PPR 351,531 1,794 Remy Cointreau SA 90,230 - -------------------------------------------------------------------------------- 1,914,782 - -------------------------------------------------------------------------------- GERMANY -- 9.3% 6,587 Bayerische Motoren Werke AG 310,774 6,489 Daimler AG 328,509 - -------------------------------------------------------------------------------- 639,283 - -------------------------------------------------------------------------------- ITALY -- 7.1% 11,508 Bulgari SpA 106,343 11,957 Luxottica Group SpA 297,638 1,065 Tod's SpA 80,475 - -------------------------------------------------------------------------------- 484,456 - -------------------------------------------------------------------------------- JAPAN -- 5.2% 13,900 Shiseido Co Ltd. 275,434 15,000 TOTO Ltd. 81,142 - -------------------------------------------------------------------------------- 356,576 - -------------------------------------------------------------------------------- SWITZERLAND -- 13.0% 10,680 Compagnie Financiere Richemont SA 345,418 5,298 Julius Baer Group Ltd. 174,885 1,455 Swatch Group AG (The) 366,412 - -------------------------------------------------------------------------------- 886,715 - -------------------------------------------------------------------------------- UNITED KINGDOM -- 2.2% 16,226 Burberry Group PLC 151,782 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- UNITED STATES -- 25.0% 9,108 Coach, Inc. $ 316,503 8,271 Nordstrom, Inc. 276,665 4,323 Northern Trust Corp. 213,989 3,768 Polo Ralph Lauren Corp. 289,571 6,014 Saks, Inc. (a) 36,745 2,477 Sotheby's 46,989 4,641 Tiffany & Co. 198,078 2,566 Wilmington Trust Corp. 31,485 4,711 Wynn Resorts Ltd. (a) 304,048 - -------------------------------------------------------------------------------- 1,714,073 - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS -- 95.9% (Cost $8,205,633) 6,565,598 - -------------------------------------------------------------------------------- PREFERRED STOCK -- 3.9% GERMANY -- 3.9% 3,848 Porsche Automobil Holding SE (Cost $487,136) 267,773 - -------------------------------------------------------------------------------- RIGHTS -- 0.1% FRANCE -- 0.1% 2,971 Pernod-Ricard SA (a) (Cost $0) 5,066 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.9% (Cost -- $8,692,769) 6,838,437 Other Assets in excess of Liabilities -- 0.1% 6,858 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 6,845,295 ================================================================================ ADR -- American Depositary Receipt AG -- Stock Corporation PLC -- Public Limited Company SA -- Corporation SE -- Stock Corporation SpA -- Joint Stock Company (a) Non-income producing security. See notes to financial statements. 40 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 l PORTFOLIO OF INVESTMENTS (unaudited) continued ENY | Claymore/SWM Canadian Energy Income Index ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 57.3% CANADA -- 57.3% 923,935 BlackPearl Resources, Inc. (a) $ 2,147,158 50,366 Canadian Natural Resources Ltd. 3,366,651 93,013 Cenovus Energy, Inc. (a) 2,365,358 1,852,936 Connacher Oil and Gas Ltd. (a) 1,827,890 56,903 Crescent Point Energy Corp. 2,133,626 10,505 EnCana Corp. 563,688 65,325 Husky Energy, Inc. 1,716,389 91,428 Imperial Oil Ltd. 3,516,628 1,487,228 Ivanhoe Energy, Inc. (a) 3,978,167 72,890 Nexen, Inc. 1,716,726 1,617,019 Oilsands Quest, Inc. (a) 1,956,593 1,533,701 OPTI Canada, Inc. (a) 3,011,393 55,388 Petrobank Energy & Resources Ltd. (a) 2,642,653 138,976 Suncor Energy, Inc. 4,996,149 1,442,024 UTS Energy Corp. (a) 2,831,387 - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $33,141,014) 38,770,456 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- INCOME TRUSTS -- 42.2% CANADA -- 42.2% 105,049 ARC Energy Trust $ 2,017,778 180,477 Baytex Energy Trust 4,651,231 91,282 Bonavista Energy Trust 1,811,354 192,322 Canadian Oil Sands Trust 5,335,944 219,474 Daylight Resources Trust 1,873,622 123,554 Enerplus Resources Fund 2,830,286 186,442 NAL Oil & Gas Trust 2,249,506 261,876 Penn West Energy Trust 4,595,405 181,812 Peyto Energy Trust 2,031,535 40,953 Vermilion Energy Trust 1,189,841 - -------------------------------------------------------------------------------- TOTAL INCOME TRUSTS (Cost $22,634,153) 28,586,502 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.5% (Cost $55,775,167) 67,356,958 Other Assets in excess of Liabilities -- 0.5% 366,067 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 67,723,025 ================================================================================ (a) Non-income producing security. See notes to financial statements. Semiannual Report | November 30, 2009 | 41 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued CRO | Claymore/Zacks Country Rotation ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 98.9% AUSTRALIA -- 11.6% 1,695 AGL Energy Ltd. $ 21,473 7,346 AMP Ltd. 41,555 2,236 Australia & New Zealand Banking Group Ltd. 45,335 1,337 BHP Billiton Ltd. 50,544 6,046 Brambles Ltd. 36,526 989 Commonwealth Bank of Australia 47,799 812 CSL Ltd. 23,442 7,256 Foster's Group Ltd. 37,327 9,794 Insurance Australia Group Ltd. 35,143 375 Macquarie Group Ltd. 16,476 1,615 National Australia Bank Ltd. 42,309 720 Newcrest Mining Ltd. 24,247 1,602 Origin Energy Ltd. 22,890 1,226 QBE Insurance Group Ltd. 24,958 234 Rio Tinto Ltd. 15,349 1,624 Santos Ltd. 21,882 5,894 Suncorp-Metway Ltd. 47,369 14,909 Telstra Corp Ltd. 46,536 1,112 Wesfarmers Ltd. 30,312 3,175 Westfield Group -- REIT 35,485 2,457 Westpac Banking Corp. 54,291 547 Woodside Petroleum Ltd. 24,409 1,371 Woolworths Ltd. 35,201 - -------------------------------------------------------------------------------- 780,858 - -------------------------------------------------------------------------------- BERMUDA -- 7.4% 7,000 Cheung Kong Infrastructure Holdings Ltd. 25,967 24,000 Chinese Estates Holdings Ltd. 40,443 6,046 Esprit Holdings Ltd. 40,642 8,500 Kerry Properties Ltd. 43,157 18,000 Li & Fung Ltd. 72,463 42,000 Noble Group Ltd. 93,997 17,000 NWS Holdings Ltd. 33,210 65,000 Pacific Basin Shipping Ltd. 49,231 30,000 Shangri-La Asia Ltd. 54,347 16,000 Yue Yuen Industrial Holdings Ltd. 45,109 - -------------------------------------------------------------------------------- 498,566 - -------------------------------------------------------------------------------- CAYMAN ISLANDS -- 2.1% 3,200 ASM Pacific Technology Ltd. 26,157 65,000 Foxconn International Holdings Ltd. (a) 56,109 14,000 Kingboard Chemical Holdings Ltd. 56,270 - -------------------------------------------------------------------------------- 138,536 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- CHINA -- 17.7% 14,000 Bank of East Asia Ltd. $ 60,605 29,000 BOC Hong Kong Holdings Ltd. 66,530 33,000 Cathay Pacific Airways Ltd. 56,376 4,000 Cheung Kong Holdings Ltd. 50,270 7,000 CLP Holdings Ltd. 47,464 8,000 Hang Lung Group Ltd. 39,173 13,000 Hang Lung Properties Ltd. 47,470 2,500 Hang Seng Bank Ltd. 36,580 6,000 Henderson Land Development Co. Ltd. 42,348 22,000 Hong Kong & China Gas Co. Ltd. 52,231 800 Hong Kong Aircraft Engineerg Co. Ltd. 10,622 2,400 Hong Kong Exchanges and Clearing Ltd. 42,796 8,500 Hongkong Electric Holdings Ltd. 46,173 12,000 Hopewell Holdings Ltd. 37,857 7,000 Hutchison Whampoa Ltd. 47,328 16,000 Hysan Development Co. Ltd. 45,935 23,500 Link (The) -- REIT 59,189 14,500 MTR Corp. 49,299 24,000 New World Development Ltd. 49,362 24,000 Sino Land Co. Ltd. 45,584 4,000 Sun Hung Kai Properties Ltd. 59,302 3,500 Swire Pacific Ltd. 40,170 7,000 Television Broadcasts Ltd. 31,974 11,000 Wharf Holdings Ltd. 59,328 13,000 Wheelock & Co. Ltd. 42,019 2,000 Wing Hang Bank Ltd. 20,696 - -------------------------------------------------------------------------------- 1,186,681 - -------------------------------------------------------------------------------- FRANCE -- 1.1% 512 AXA SA 12,199 138 BNP Paribas 11,395 389 France Telecom SA 10,118 242 GDF Suez 10,104 150 Sanofi-Aventis SA 11,332 165 Total SA 10,209 361 Vivendi 10,401 - -------------------------------------------------------------------------------- 75,758 - -------------------------------------------------------------------------------- ISLE OF MAN -- 1.1% 97,000 Genting Singapore PLC (a) 74,931 - -------------------------------------------------------------------------------- See notes to financial statements. 42 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued CRO | Claymore/Zacks Country Rotation ETF (continued) NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- JAPAN -- 24.0% 500 Astellas Pharma, Inc. $ 18,515 1,800 Bridgestone Corp. 28,731 800 Canon, Inc. 30,925 2 Central Japan Railway Co. 14,510 1,200 Chubu Electric Power Co., Inc. 30,785 1,400 Daiichi Sankyo Co. Ltd. 27,514 700 Denso Corp. 19,624 300 East Japan Railway Co. 21,243 100 Fanuc Ltd. 8,288 600 FUJIFILM Holdings Corp. 16,403 11,000 Hitachi Ltd. 29,880 1,300 Honda Motor Co. Ltd. 40,745 5,000 ITOCHU Corp. 34,419 3 Japan Tobacco, Inc. 8,908 500 JFE Holdings, Inc. 16,484 1,200 Kansai Electric Power Co., Inc. (The) 29,950 1,000 Kao Corp. 24,610 2 KDDI Corp. 10,842 8,000 Kintetsu Corp. 30,925 3,000 Kirin Holdings Co. Ltd. 49,173 1,900 Komatsu Ltd. 37,451 100 Kyocera Corp. 7,987 800 Kyushu Electric Power Co., Inc. 17,635 1,900 Mitsubishi Corp. 43,009 6,000 Mitsubishi Electric Corp. 42,487 2,000 Mitsubishi Estate Co. Ltd. 31,226 10,000 Mitsubishi Heavy Industries Ltd. 32,736 7,400 Mitsubishi UFJ Financial Group, Inc. 41,405 2,900 Mitsui & Co. Ltd. 38,512 2,000 Mitsui Fudosan Co. Ltd. 34,593 600 Mitsui Sumitomo Insurance Group Holdings, Inc. 15,811 19,400 Mizuho Financial Group, Inc. 36,483 200 Murata Manufacturing Co. Ltd. 9,542 100 Nintendo Co. Ltd. 24,621 12,000 Nippon Steel Corp. 44,715 400 Nippon Telegraph & Telephone Corp. 17,413 6,300 Nissan Motor Co. Ltd. 45,781 4,900 Nomura Holdings, Inc. 35,380 6 NTT DoCoMo, Inc. 9,124 2,500 Panasonic Corp. 32,242 2,000 Ricoh Co. Ltd. 26,722 200 Secom Co. Ltd. 9,380 1,100 Seven & I Holdings Co. Ltd. 24,683 NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- 3,000 Sharp Corp. $ 34,407 400 Shin-Etsu Chemical Co. Ltd. 21,777 1,500 Softbank Corp. 36,044 1,000 Sony Corp. 26,989 2,700 Sumitomo Corp. 26,641 17,000 Sumitomo Metal Industries Ltd. 43,218 700 Sumitomo Mitsui Financial Group, Inc. 23,159 700 Takeda Pharmaceutical Co. Ltd. 29,253 900 Tohoku Electric Power Co. Ltd. 19,088 900 Tokio Marine Holdings, Inc. 25,962 1,100 Tokyo Electric Power Co. Inc. (The) 29,752 200 Tokyo Electron Ltd. 10,958 10,000 Tokyo Gas Co. Ltd. 41,326 10,000 Toshiba Corp. 53,166 900 Toyota Motor Corp. 35,939 - -------------------------------------------------------------------------------- 1,609,091 - -------------------------------------------------------------------------------- MAURITIUS -- 1.0% 198,690 Golden Agri-Resources Ltd. 65,984 - -------------------------------------------------------------------------------- SINGAPORE -- 15.6% 44,000 Ascendas Real Estate Investment Trust -- REIT 61,625 17,000 CapitaLand Ltd. 49,460 50,000 CapitaMall Trust -- REIT 62,087 6,000 City Developments Ltd. 43,317 51,000 ComfortDelgro Corp. Ltd. 54,492 6,000 DBS Group Holdings Ltd. 62,029 13,000 Fraser and Neave Ltd. 37,353 2,000 Jardine Cycle & Carriage Ltd. 35,057 9,000 Keppel Corp. Ltd. 52,630 34,000 Olam International Ltd. 64,556 9,000 Oversea-Chinese Banking Corp. Ltd. 54,449 21,000 SembCorp Industries Ltd. 56,095 17,000 SembCorp Marine Ltd. 42,956 5,000 Singapore Airlines Ltd. 48,009 7,000 Singapore Exchange Ltd. 39,721 22,000 Singapore Press Holdings Ltd. 59,243 28,000 Singapore Technologies Engineering Ltd. 61,250 22,000 Singapore Telecommunications Ltd. 46,536 5,000 United Overseas Bank Ltd. 68,007 11,000 Wilmar International Ltd. 50,031 - -------------------------------------------------------------------------------- 1,048,903 - -------------------------------------------------------------------------------- See notes to financial statements. Semiannual Report | November 30, 2009 | 43 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued CRO | Claymore/Zacks Country Rotation ETF (continued) NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- SPAIN -- 3.3% 504 Abertis Infraestructuras SA $ 11,483 183 ACS Actividades de Construccion y Servicios SA 9,108 1,563 Banco Bilbao Vizcaya Argentaria SA 29,438 2,180 Banco Popular Espanol SA 18,459 3,500 Banco Santander SA 59,956 528 Gas Natural SDG SA 10,951 2,223 Iberdrola SA 21,093 211 Inditex SA 13,441 424 Repsol YPF SA 11,649 1,321 Telefonica SA 37,920 - -------------------------------------------------------------------------------- 223,498 - -------------------------------------------------------------------------------- SWEDEN -- 2.8% 200 Hennes & Mauritz AB -- Class B 11,798 3,572 Nordea Bank AB 36,951 2,329 Sandvik AB 27,375 490 Svenska Handelsbanken AB -- Class A 14,015 3,056 Telefonaktiebolaget LM Ericsson -- Class B 29,295 5,546 TeliaSonera AB 39,279 2,965 Volvo AB -- Class B 28,105 - -------------------------------------------------------------------------------- 186,818 - -------------------------------------------------------------------------------- SWITZERLAND -- 2.0% 1,158 ABB Ltd. 21,217 213 Credit Suisse Group AG 11,029 523 Nestle SA 24,727 477 Novartis AG 26,480 70 Roche Holding AG 11,452 39 Syngenta AG 10,342 1,271 UBS AG 19,718 51 Zurich Financial Services AG 10,990 - -------------------------------------------------------------------------------- 135,955 - -------------------------------------------------------------------------------- UNITED KINGDOM -- 9.0% 332 Anglo American PLC 14,182 229 AstraZeneca PLC 10,211 3,443 BAE Systems PLC 18,539 5,932 Barclays PLC 28,460 1,043 BG Group PLC 18,880 798 BHP Billiton PLC 24,326 4,504 BP PLC 42,472 697 British American Tobacco PLC 21,127 7,174 Centrica PLC 29,975 1,396 Diageo PLC 23,482 1,694 GlaxoSmithKline PLC 34,945 4,136 HSBC Holdings PLC 47,988 NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- 368 Imperial Tobacco Group PLC $ 10,677 38,302 Lloyds Banking Group PLC 34,666 1,966 National Grid PLC 21,310 220 Reckitt Benckiser Group PLC 11,192 256 Rio Tinto PLC 12,973 703 Royal Dutch Shell PLC -- Class B 20,040 706 Royal Dutch Shell PLC -- Class A 20,976 465 SABMiller PLC 13,507 469 Standard Chartered PLC 11,422 4,837 Tesco PLC 33,578 406 Unilever PLC 11,887 24,801 Vodafone Group PLC 55,801 1,720 Xstrata PLC 30,175 - -------------------------------------------------------------------------------- 602,791 - -------------------------------------------------------------------------------- UNITED STATES -- 0.2% 93 Synthes, Inc. 12,233 - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS -- 98.9% (Cost -- $6,102,162) 6,640,603 - -------------------------------------------------------------------------------- EXCHANGE-TRADED FUNDS -- 0.8% UNITED STATES -- 0.8% 1,810 SPDR MSCI ACWI ex-US ETF (Cost -- $50,845) 56,237 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.7% (Cost $6,153,007) 6,696,840 Other Assets in excess of Liabilities -- 0.3% 17,326 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 6,714,166 ================================================================================ AB -- Publicly Traded Company AG -- Corporation PLC -- Public Limited Company REIT -- Real Estate Investment Trust SA -- Corporation (a) Non-income producing security. See notes to financial statements. 44 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued HGI | Claymore/Zacks International Multi-Asset Income Index ETF NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- COMMON STOCKS -- 79.0% ARGENTINA -- 0.2% 2,109 YPF SA, ADR $ 78,645 - -------------------------------------------------------------------------------- AUSTRALIA -- 3.1% 40,067 Amcor Ltd. 216,751 10,580 Australia & New Zealand Banking Group Ltd. 214,509 8,188 National Australia Bank Ltd. 214,504 17,395 Santos Ltd. 234,379 8,258 Westpac Banking Corp. 182,473 - -------------------------------------------------------------------------------- 1,062,616 - -------------------------------------------------------------------------------- AUSTRIA -- 0.5% 10,499 Telekom AG 182,532 - -------------------------------------------------------------------------------- BERMUDA -- 0.4% 236,000 First Pacific Co. 136,725 - -------------------------------------------------------------------------------- BRAZIL -- 1.2% 7,086 CPFL Energia SA, ADR 406,807 - -------------------------------------------------------------------------------- CANADA -- 4.5% 6,087 Canadian Natural Resources Ltd. 408,681 6,651 EnCana Corp. 356,886 17,326 Nexen, Inc. 408,067 21,938 Talisman Energy, Inc. 383,037 - -------------------------------------------------------------------------------- 1,556,671 - -------------------------------------------------------------------------------- CHILE -- 1.2% 2,528 Empresa Nacional de Electricidad SA, ADR 122,279 4,330 Sociedad Quimica y Minera SA, ADR 163,587 3,068 Vina Concha y Toro SA, ADR 123,702 - -------------------------------------------------------------------------------- 409,568 - -------------------------------------------------------------------------------- CHINA -- 5.6% 18,000 Cheung Kong Holdings Ltd. 226,215 51,000 CLP Holdings Ltd. 345,806 2,187 CNOOC Ltd., ADR 338,854 430,000 Guangshen Railway Co. Ltd. -- Class H 169,222 14,600 Hang Seng Bank Ltd. 213,627 21,500 Swire Pacific Ltd. -- Class A 246,760 212,000 Yanzhou Coal Mining Co. Ltd. -- Class H 422,350 - -------------------------------------------------------------------------------- 1,962,834 - -------------------------------------------------------------------------------- FINLAND -- 0.8% 19,929 Nokia OYJ 262,402 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- FRANCE -- 8.1% 1,818 Air Liquide SA $ 211,260 1,698 Dassault Systemes SA 97,689 9,379 France Telecom SA 243,956 3,546 Group Danone SA 211,940 2,270 Lafarge SA 186,523 1,420 L'Oreal SA 154,052 4,744 Publicis Groupe SA 182,618 4,571 Sanofi-Aventis SA 345,330 12,238 SCOR SE 298,294 2,234 Societe Generale 157,270 4,239 Sodexo 238,022 2,972 Total SA 183,880 5,618 Vinci SA 310,604 - -------------------------------------------------------------------------------- 2,821,438 - -------------------------------------------------------------------------------- GERMANY -- 4.1% 1,977 Adidas AG 113,176 2,154 Aixtron AG 77,517 3,409 Bayer AG 260,972 22,125 Deutsche Telekom AG 326,195 2,739 Fresenius Medical Care AG & Co. KGaA 145,613 3,874 Henkel AG & Co. KGaA 167,158 2,011 SAP AG 96,071 1,963 Siemens AG 192,331 321 Volkswagen AG 39,518 - -------------------------------------------------------------------------------- 1,418,551 - -------------------------------------------------------------------------------- GREECE -- 1.4% 11,070 Coca Cola Hellenic Bottling Co. SA, ADR 242,101 29,295 Hellenic Telecommunications Organization SA, ADR 227,622 - -------------------------------------------------------------------------------- 469,723 - -------------------------------------------------------------------------------- INDIA -- 0.8% 2,266 Dr. Reddy's Laboratories Ltd., ADR 54,951 756 HDFC Bank Ltd., ADR 101,720 2,084 Infosys Technologies Ltd., ADR 106,221 - -------------------------------------------------------------------------------- 262,892 - -------------------------------------------------------------------------------- ISRAEL -- 1.1% 18,230 Partner Communications Co. Ltd., ADR 336,344 941 Teva Pharmaceutical Industries Ltd., ADR 49,675 - -------------------------------------------------------------------------------- 386,019 - -------------------------------------------------------------------------------- See notes to financial statements. Semiannual Report | November 30, 2009 | 45 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued HGI | Claymore/Zacks International Multi-Asset Income Index ETF (continued) NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- ITALY -- 0.7% 27,758 Benetton Group SpA $ 253,798 - -------------------------------------------------------------------------------- JAPAN -- 4.6% 3,800 Advantest Corp. 84,783 6,900 Canon, Inc. 266,725 4,800 Eisai Co. Ltd. 176,632 4,300 Kao Corp. 105,822 11,600 Konami Corp. 194,175 1,100 Nidec Corp. 96,918 9,400 Nomura Real Estate Holdings, Inc. 146,437 73 NTT DoCoMo, Inc. 111,011 10,600 Panasonic Corp. 136,707 3,800 Sony Corp. 102,560 3,500 TDK Corp. 183,238 - -------------------------------------------------------------------------------- 1,605,008 - -------------------------------------------------------------------------------- JERSEY -- 0.3% 320 Randgold Resources Ltd. 27,072 3,292 Shire PLC 64,020 - -------------------------------------------------------------------------------- 91,092 - -------------------------------------------------------------------------------- LUXEMBOURG -- 1.7% 7,840 ArcelorMittal 305,447 7,652 Tenaris SA, ADR 301,948 - -------------------------------------------------------------------------------- 607,395 - -------------------------------------------------------------------------------- MEXICO -- 4.9% 1,181 America Movil SAB de CV -- Series L, ADR 57,137 2,364 Coca-Cola Femsa SAB de CV, ADR 135,055 21,540 Grupo Aeroportuario del Centro Norte SAB de CV, ADR 263,003 10,919 Grupo Aeroportuario del Pacifico SAB de CV, ADR 308,789 13,753 Grupo Aeroportuario del Sureste SAB de CV, ADR 669,909 12,515 Industrias Bachoco SAB de CV, ADR 272,827 - -------------------------------------------------------------------------------- 1,706,720 - -------------------------------------------------------------------------------- NETHERLANDS -- 3.9% 4,295 Heineken Holding NV 176,974 12,028 Koninklijke Ahold NV 162,145 9,043 Koninklijke DSM NV 444,773 11,275 Koninklijke KPM NV 200,086 13,775 Koninklijke Philips Electronics NV 376,706 - -------------------------------------------------------------------------------- 1,360,684 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- NORWAY -- 0.8% 6,200 Yara International ASA $ 265,630 - -------------------------------------------------------------------------------- PORTUGAL -- 0.7% 20,969 Portugal Telecom SGPS SA 253,460 - -------------------------------------------------------------------------------- SINGAPORE -- 0.6% 21,000 DBS Group Holdings Ltd. 217,103 - -------------------------------------------------------------------------------- SOUTH AFRICA -- 0.8% 7,340 Sasol Ltd., ADR 290,517 - -------------------------------------------------------------------------------- SPAIN -- 1.7% 11,238 Banco Santander SA 192,511 19,227 Bankinter SA 205,962 7,193 Repsol YPF SA 197,626 - -------------------------------------------------------------------------------- 596,099 - -------------------------------------------------------------------------------- SWEDEN -- 1.2% 15,305 Atlas Copco AB -- Class A 216,353 20,405 Volvo AB -- Class B 193,417 - -------------------------------------------------------------------------------- 409,770 - -------------------------------------------------------------------------------- SWITZERLAND -- 2.7% 4,624 Nestle SA 218,618 6,389 Novartis AG 354,679 951 Roche Holding AG 158,902 728 Syngenta AG 193,046 - -------------------------------------------------------------------------------- 925,245 - -------------------------------------------------------------------------------- TAIWAN -- 2.1% 20,993 Chunghwa Telecom Co. Ltd., ADR 373,465 26,938 Siliconware Precision Industries Co., ADR 181,023 17,832 Taiwan Semiconductor Manufacturing Co. Ltd., ADR 185,274 - -------------------------------------------------------------------------------- 739,762 - -------------------------------------------------------------------------------- TURKEY -- 0.7% 16,306 Turkcell Iletisim Hizmet AS, ADR 250,460 - -------------------------------------------------------------------------------- UNITED KINGDOM -- 18.4% 66,122 ARM Holdings PLC 167,869 14,316 Associated British Foods PLC 189,244 6,513 BG Group PLC 117,894 10,978 BHP Billiton PLC 334,647 28,184 BP PLC 265,769 29,478 British Sky Broadcasting Group PLC 256,153 201,942 BT Group PLC 464,633 33,797 Bunzl PLC 346,097 47,988 Centrica PLC 200,506 8,939 GlaxoSmithKline PLC 184,399 34,159 HSBC Holdings PLC 396,333 7,008 Imperial Tobacco Group PLC 203,335 See notes to financial statements. 46 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | PORTFOLIO OF INVESTMENTS (unaudited) continued HGI | Claymore/Zacks International Multi-Asset Income Index ETF (continued) NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- UNITED KINGDOM (CONTINUED) 218,908 Ladbrokes PLC $ 484,988 159,489 Legal & General Group PLC 202,454 31,323 Marks & Spencer Group PLC 198,369 21,474 National Grid PLC 232,767 92,613 Rexam PLC 421,613 7,114 Royal Dutch Shell PLC -- Class A 211,369 17,977 Smith & Nephew PLC 170,522 30,744 Tate & Lyle PLC 209,283 43,777 Tesco PLC 303,894 11,518 Unilever PLC 337,215 34,139 United Utilities Group PLC 267,074 96,255 Vodafone Group PLC 216,569 - -------------------------------------------------------------------------------- 6,382,996 - -------------------------------------------------------------------------------- UNITED STATES -- 0.2% 6,566 News Corp. -- Class B 90,874 - -------------------------------------------------------------------------------- TOTAL COMMON STOCK -- 79.0% (Cost $24,101,054) 27,464,036 - -------------------------------------------------------------------------------- CLOSED END FUNDS -- 9.9% UNITED STATES -- 9.9% 17,541 AllianceBernstein Global High Income Fund, Inc. 229,261 15,853 BlackRock Global Opportunities Equity Trust 297,244 20,420 BlackRock Real Asset Equity Trust 253,821 29,157 Calamos Global Dynamic Income Fund 224,509 14,292 Eaton Vance Tax-Advantaged Dividend Income Fund 226,099 17,344 Eaton Vance Tax-Advantaged Global Dividend Income Fund 239,868 24,229 Evergreen Global Dividend Opportunity Fund 248,347 16,198 First Trust Aberdeen Global Opportunity Income Fund 261,112 12,988 Gabelli Global Deal Fund (The) 186,638 28,651 MFS Intermediate Income Trust 194,254 12,746 Nuveen Multi-Currency Short-Term Government Income Fund 209,927 37,398 Putnam Premier Income Trust 227,754 23,031 Van Kampen Dynamic Credit Opportunities Fund 249,195 12,003 Western Asset Emerging Markets Debt Fund, Inc. 206,452 16,739 Western Asset Emerging Markets Income Fund, Inc. 207,061 - -------------------------------------------------------------------------------- TOTAL CLOSED END FUNDS (Cost $3,057,079) 3,461,542 - -------------------------------------------------------------------------------- NUMBER OF SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------- INCOME TRUSTS -- 6.2% CANADA -- 6.2% 41,934 Enerplus Resources Fund $ 960,708 67,994 Penn West Energy Trust 1,194,655 - -------------------------------------------------------------------------------- TOTAL INCOME TRUSTS (Cost $1,592,519) 2,155,363 - -------------------------------------------------------------------------------- PREFERRED STOCKS -- 4.6% BRAZIL -- 2.1% 11,805 Gerdau SA, ADR 190,061 2,646 Itau Unibanco Holding SA, ADR 58,874 19,073 Telecomunicacoes de Sao Paulo SA, ADR 472,820 - -------------------------------------------------------------------------------- 721,755 - -------------------------------------------------------------------------------- CHILE -- 1.1% 19,795 Embotelladora Andina SA -- Class B, ADR 371,948 - -------------------------------------------------------------------------------- COLOMBIA -- 1.4% 11,478 BanColombia SA, ADR 492,406 - -------------------------------------------------------------------------------- TOTAL PREFERRED STOCKS (Cost $1,275,870) 1,586,109 - -------------------------------------------------------------------------------- RIGHTS -- 0.0% 3,694 Fortis (a) (Cost $0) 0 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 99.7% (Cost $30,026,522) 34,667,050 Other Assets in excess of Liabilities -- 0.3% 100,309 - -------------------------------------------------------------------------------- NET ASSETS -- 100.0% $ 34,767,359 ================================================================================ AB -- Stock Company ADR -- American Depositary Receipt AG -- Stock Corporation ASA -- Stock Company KGaA -- Limited Partnership NV -- Publicly-Traded Company OYJ -- Publicly-Traded Company PLC -- Public Limited Company SA -- Corporation SAB de CV -- Variable Capital Company SE -- Stock Corporation SpA -- Limited Share Company (a) Security is valued in accordance with Fair Valuation procedures established in good faith by the Board of Trustees. The total market value of such securities is $0 which represents 0.0% of net assets. See notes to financial statements. Semiannual Report | November 30, 2009 | 47 Claymore Exchange-Traded Fund Trust 2 | Statement of ASSETS AND LIABILITIES | NOVEMBER 30, 2009 (unaudited)
CLAYMORE/ CLAYMORE/ BEACON GLOBAL CLAYMORE/ CLAYMORE/ ALPHASHARES EXCHANGES, BEACON ALPHASHARES CHINA BROKERS & GLOBAL CHINA SMALL CAP ASSET TIMBER REAL ESTATE INDEX MANAGERS INDEX ETF ETF INDEX ETF INDEX ETF (TAO) (HAO) (EXB) (CUT) - ----------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in securities, at value $ 84,367,412 $ 302,708,916 $ 3,221,158 $ 92,756,450 Foreign currency, at value 6,313 -- 124 62 Cash 13,458 166,494 16,637 -- Receivables: Fund shares sold 1,507,727 2,082,926 -- -- Investments sold -- -- 471 -- Dividends 259,380 148,155 5,100 253,530 Tax Reclaims -- -- -- 29,888 Due from Adviser 21,865 -- 85,157 -- Other assets 18,750 866 3,853 835 - ----------------------------------------------------------------------------------------------------------------------------- Total assets 86,194,905 305,107,357 3,332,500 93,040,765 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Custodian bank -- 6,731 -- 48,275 Payables: Investments purchased 1,507,351 2,083,018 -- -- Administration fee payable -- 5,477 -- 2,060 Accrued advisory fees -- 60,692 -- 33,843 Accrued expenses 170,452 201,847 108,174 135,240 - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,677,803 2,357,765 108,174 219,418 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 84,517,102 $ 302,749,592 $ 3,224,326 $ 92,821,347 ============================================================================================================================= COMPOSITION OF NET ASSETS Paid-in capital $ 85,043,548 $ 261,986,120 $11,531,121 $ 99,498,315 Accumulated undistributed net investment income (loss) 954,148 524,169 54,053 506,192 Accumulated net realized gain (loss) on investments and currency transactions (11,369,579) (1,295,583) (6,551,137) (19,930,663) Net unrealized appreciation (depreciation) on investments and currency translation 9,888,985 41,534,886 (1,809,711) 12,747,503 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 84,517,102 $ 302,749,592 $ 3,224,326 $ 92,821,347 ============================================================================================================================= Shares outstanding ($0.01 par value with unlimited amount authorized) 4,520,000 11,680,000 240,000 5,320,000 Net Asset Value $ 18.70 $ 25.92 $ 13.43 $ 17.45 ============================================================================================================================= Investments in securities, at cost $ 74,478,427 $ 261,174,029 $ 5,031,009 $ 80,018,900 ============================================================================================================================= Foreign currency, at cost $ 6,313 $ -- $ 124 $ 61 =============================================================================================================================
See notes to financial statements. 48 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | STATEMENT OF ASSETS AND LIABILITIES (unaudited) continued
CLAYMORE/ CLAYMORE/ CLAYMORE/ CLAYMORE/ CLAYMORE/ ROBB SWM ZACKS BNY DELTA REPORT CANADIAN CLAYMORE/ INTERNATIONAL MELLON GLOBAL GLOBAL ENERGY ZACKS MULTI-ASSET FRONTIER SHIPPING LUXURY INCOME COUNTRY INCOME MARKETS INDEX INDEX INDEX ROTATION INDEX ETF ETF ETF ETF ETF ETF (FRN) (SEA) (ROB) (ENY) (CRO) (HGI) - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in securities, at value $ 24,869,676 $ 115,822,526 $ 6,838,437 $ 67,356,958 $ 6,696,840 $ 34,667,050 Foreign currency, at value -- -- 30 60,603 11,716 3,517 Cash 11,133 91,707 -- 111,954 -- 28,487 Receivables: Fund shares sold -- 1,080,401 1,379,517 -- -- -- Investments sold -- -- -- 16,156,217 24,092 24,650 Dividends 44,177 91,463 22,318 170,503 19,868 88,534 Tax Reclaims -- -- 10,989 -- -- 10,217 Due from Adviser 66,217 -- 79,227 -- 68,257 55,442 Other assets 1,729 39,694 424 3,246 9,435 579 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets 24,992,932 117,125,791 8,330,942 83,859,481 6,830,208 34,878,476 - ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Custodian bank -- -- 10,441 -- 6,374 -- Payables: Investments purchased -- 1,080,387 1,380,350 15,996,248 11,758 -- Administration fee payable -- 2,230 -- 1,527 -- -- Accrued advisory fees -- 19,942 -- 27,666 -- -- Accrued expenses 92,616 108,641 94,856 111,015 97,910 111,117 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 92,616 1,211,200 1,485,647 16,136,456 116,042 111,117 - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 24,900,316 $ 115,914,591 $ 6,845,295 $ 67,723,025 $ 6,714,166 $ 34,767,359 ==================================================================================================================================== COMPOSITION OF NET ASSETS Paid-in capital $ 27,628,105 $ 114,181,844 $ 9,888,995 $ 72,459,517 $10,039,339 $ 33,421,076 Accumulated undistributed net investment income (loss) 550,136 129,933 56,269 525,837 113,793 3,537 Accumulated net realized gain (loss) on investments and currency transactions (3,928,590) (1,664,846) (1,246,265) (16,843,165) (3,983,651) (3,298,425) Net unrealized appreciation (depreciation) on investments and currency translation 650,665 3,267,660 (1,853,704) 11,580,836 544,685 4,641,171 - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 24,900,316 $ 115,914,591 $ 6,845,295 $ 67,723,025 $ 6,714,166 $ 34,767,359 ==================================================================================================================================== Shares outstanding ($0.01 par value with unlimited amount authorized) 1,360,000 8,800,000 400,000 4,120,000 400,000 2,000,000 Net Asset Value $ 18.31 $ 13.17 $ 17.11 $ 16.44 $ 16.79 $ 17.38 ==================================================================================================================================== Investments in securities, at cost $ 24,219,011 $ 112,558,442 $ 8,692,769 $ 55,775,167 $ 6,153,007 $ 30,026,522 ==================================================================================================================================== Foreign currency, at cost $ -- $ -- $ 29 $ 60,603 $ 11,472 $ 3,498 ====================================================================================================================================
See notes to financial statements. Semiannual Report | November 30, 2009 | 49 Claymore Exchange-Traded Fund Trust 2 | Statement of OPERATIONS | FOR THE SIX MONTHS ENDED NOVEMBER 30, 2009 (unaudited)
CLAYMORE/ CLAYMORE/ BEACON GLOBAL CLAYMORE/ CLAYMORE/ ALPHASHARES EXCHANGES, BEACON ALPHASHARES CHINA BROKERS & GLOBAL CHINA SMALL CAP ASSET TIMBER REAL ESTATE INDEX MANAGERS INDEX ETF ETF INDEX ETF ETF (TAO) (HAO) (EXB) (CUT) - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME Dividend income $ 890,691 $ 810,030 $ 33,553 $ 655,515 Return of capital distributions received -- -- (1,512) (113,551) Foreign taxes withheld (1,440) (19,298) (591) (12,885) - ------------------------------------------------------------------------------------------------------------------------ Net dividend income 889,251 790,732 31,450 529,079 EXPENSES Advisory fee 182,291 468,233 7,998 174,734 Administration fee 10,026 23,009 440 9,610 Custodian fee 45,520 81,297 30,923 27,130 Licensing 42,251 115,443 1,599 40,129 Listing fee and expenses 1,000 1,000 1,000 1,000 Miscellaneous 8,184 7,035 8,750 10,803 Offering costs -- -- -- -- Printing expenses 11,031 10,096 4,344 9,676 Professional fees 21,651 30,179 13,914 20,172 Registration & filings 540 3,108 -- 433 Trustees'fees and expenses 2,070 2,070 2,070 2,070 - ------------------------------------------------------------------------------------------------------------------------ Total expenses 324,564 741,470 71,038 295,757 Advisory fees waived (69,357) (102,971) (7,998) (51,130) Other expenses waived or reimbursed -- -- (51,843) -- - ------------------------------------------------------------------------------------------------------------------------ Net Expenses 255,207 638,499 11,197 244,627 - ------------------------------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME (LOSS) 634,044 152,233 20,253 284,452 - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on Investments (618,742) (93,822) (470,595) (13,035,725) In-kind transactions -- 7,219,674 -- 1,647,859 Foreign currency transactions 41 (1,601) (625) (118,761) - ------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) (618,701) 7,124,251 (471,220) (11,506,627) Net change in unrealized appreciation (depreciation) on Investments 6,947,723 26,616,128 686,011 23,600,284 Foreign currency translation 26 (3) 78 7,939 - ------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) 6,947,749 26,616,125 686,089 23,608,223 - ------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 6,329,048 33,740,376 214,869 12,101,596 - ------------------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 6,963,092 $ 33,892,609 $ 235,122 $ 12,386,048 ========================================================================================================================
See notes to financial statements. 50 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | STATEMENT OF OPERATIONS (unaudited) continued
CLAYMORE/ CLAYMORE/ CLAYMORE/ CLAYMORE/ CLAYMORE/ ROBB SWM ZACKS BNY DELTA REPORT CANADIAN CLAYMORE/ INTERNATIONAL MELLON GLOBAL GLOBAL ENERGY ZACKS MULTI-ASSET FRONTIER SHIPPING LUXURY INCOME COUNTRY INCOME MARKETS INDEX INDEX INDEX ROTATION INDEX ETF ETF ETF ETF ETF ETF (FRN) (SEA) (ROB) (ENY) (CRO) (HGI) - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Dividend income $ 417,180 $ 1,347,551 $ 44,027 $ 1,228,163 $ 78,813 $ 589,426 Return of capital distributions received -- (191,973) -- -- (539) (26,725) Foreign taxes withheld (56,648) (27,913) (2,600) (184,277) (2,245) (29,164) - ----------------------------------------------------------------------------------------------------------------------------------- Net dividend income 360,532 1,127,665 41,427 1,043,886 76,029 533,537 EXPENSES Advisory fee 49,288 229,774 12,392 125,137 15,629 68,395 Administration fee 2,711 12,638 682 6,882 859 3,762 Custodian fee 24,899 30,447 24,918 29,089 41,999 38,066 Licensing 10,755 56,398 50,136 26,308 3,126 13,679 Listing fee and expenses 1,000 1,000 1,000 1,000 1,000 1,000 Miscellaneous 7,662 7,391 7,608 9,375 8,888 13,242 Offering costs 1,180 20,291 -- -- -- -- Printing expenses 4,964 10,819 5,369 10,950 5,176 5,367 Professional fees 16,259 28,306 14,233 17,569 14,333 14,763 Registration & filings 271 1,616 -- 443 -- 388 Trustees'fees and expenses 2,070 2,070 2,070 2,070 2,070 2,070 - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses 121,059 400,750 118,408 228,823 93,080 160,732 Advisory fees waived (49,288) (58,775) (12,392) (53,631) (15,629) (64,979) Other expenses waived or reimbursed (1,588) -- (87,428) -- (55,570) -- - ----------------------------------------------------------------------------------------------------------------------------------- Net Expenses 70,183 341,975 18,588 175,192 21,881 95,753 - ----------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) 290,349 785,690 22,839 868,694 54,148 437,784 - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on Investments (815,574) (2,174,339) (59,739) (12,220,700) (777,522) 164,842 In-kind transactions -- 6,746,783 -- 1,449,549 -- 3,531,546 Foreign currency transactions -- (14,427) (781) (5,393) (11,711) 6,173 - ----------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) (815,574) 4,558,017 (60,520) (10,776,544) (789,233) 3,702,561 Net change in unrealized appreciation (depreciation) on Investments 4,720,525 (7,525,437) 1,313,138 18,945,650 1,800,715 2,245,548 Foreign currency translation -- 55 1,017 (4,349) 34 (1,405) - ----------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) 4,720,525 (7,525,382) 1,314,155 18,941,301 1,800,749 2,244,143 - ----------------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 3,904,951 (2,967,365) 1,253,635 8,164,757 1,011,516 5,946,704 - ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 4,195,300 $ (2,181,675) $ 1,276,474 $ 9,033,451 $ 1,065,664 $ 6,384,488 ====================================================================================================================================
See notes to financial statements. Semiannual Report | November 30, 2009 | 51 Claymore Exchange-Traded Fund Trust 2 | Statement of CHANGES IN NET ASSETS |
CLAYMORE/BEACON GLOBAL CLAYMORE/ALPHASHARES CLAYMORE/ALPHASHARES EXCHANGES, BROKERS & ASSET CHINA REAL ESTATE ETF (TAO) CHINA SMALL CAP INDEX ETF (HAO) MANAGERS INDEX ETF (EXB) -------------------------------- ------------------------------- ------------------------------- FOR THE FOR THE FOR THE SIX MONTHS SIX MONTHS SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR NOVEMBER 30, 2009 ENDED NOVEMBER 30, 2009 ENDED NOVEMBER 30, 2009 ENDED (UNAUDITED) MAY 31, 2009 (UNAUDITED) MAY 31, 2009 (UNAUDITED) MAY 31, 2009 - ------------------------------------------------------------------------------------------------------------------------------------ INCREASE IN NET ASSETS RESULTING FROM OPERATIONS Net investment income (loss) $ 634,044 $ 623,975 $ 152,233 $ 391,914 $ 20,253 $ 180,701 Net realized gain (loss) (618,701) (12,007,867) 7,124,251 (10,950,214) (471,220) (9,738,981) Net unrealized appreciation (depreciation) 6,947,749 8,999,398 26,616,125 15,350,509 686,089 1,912,486 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 6,963,092 (2,384,494) 33,892,609 4,792,209 235,122 (7,645,794) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTION TO SHAREHOLDERS FROM Net investment income -- (566,840) -- (144,400) -- (320,160) Return of capital -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions -- (566,840) -- (144,400) -- (320,160) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 37,752,186 18,267,027 222,096,241 60,889,897 -- -- Cost of shares redeemed -- (4,462,904) (16,177,622) (14,139,144) -- (6,389,593) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from capital share transactions 37,752,186 13,804,123 205,918,619 46,750,753 -- (6,389,593) - ------------------------------------------------------------------------------------------------------------------------------------ Total increase (decrease) in net assets 44,715,278 10,852,789 239,811,228 51,398,562 235,122 (14,355,547) NET ASSETS Beginning of period 39,801,824 28,949,035 62,938,364 11,539,802 2,989,204 17,344,751 - ------------------------------------------------------------------------------------------------------------------------------------ End of period $ 84,517,102 $ 39,801,824 $302,749,592 $ 62,938,364 $ 3,224,326 $ 2,989,204 ==================================================================================================================================== Accumulated undistributed net investment income (loss) at end of period $ 954,148 $ 320,104 $ 524,169 $ 371,936 $ 54,053 $ 33,800 ==================================================================================================================================== CHANGES IN SHARES OUTSTANDING Shares sold 2,160,000 1,360,000 9,360,000 3,680,000 -- -- Shares redeemed -- (400,000) (720,000) (1,120,000) -- (560,000) Shares outstanding, beginning of period 2,360,000 1,400,000 3,040,000 480,000 240,000 800,000 - ------------------------------------------------------------------------------------------------------------------------------------ Shares outstanding, end of period 4,520,000 2,360,000 11,680,000 3,040,000 240,000 240,000 ====================================================================================================================================
See notes to financial statements. 52 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | STATEMENT OF CHANGES IN NET ASSETS continued
CLAYMORE/BEACON GLOBAL CLAYMORE/BNY MELLON CLAYMORE/DELTA GLOBAL TIMBER INDEX ETF (CUT) FRONTIER MARKETS ETF (FRN) SHIPPING INDEX ETF (SEA) -------------------------------- ------------------------------- ------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS SIX MONTHS PERIOD SIX MONTHS PERIOD ENDED FOR THE YEAR ENDED ENDED ENDED ENDED NOVEMBER 30, 2009 ENDED NOVEMBER 30, 2009 MAY 31, NOVEMBER 30, 2009 MAY 31, (UNAUDITED) MAY 31, 2009 (UNAUDITED) 2009(1) (UNAUDITED) 2009(2) - ------------------------------------------------------------------------------------------------------------------------------------ INCREASE IN NET ASSETS RESULTING FROM OPERATIONS Net investment income (loss) $ 284,452 $ 1,185,510 $ 290,349 $ 315,512 $ 785,690 $ 1,191,909 Net realized gain (loss) (11,506,627) (9,967,554) (815,574) (3,113,016) 4,558,017 (6,315,214) Net unrealized appreciation (depreciation) 23,608,223 (9,992,215) 4,720,525 (4,069,860) (7,525,382) 10,793,042 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 12,386,048 (18,774,259) 4,195,300 (6,867,364) (2,181,675) 5,669,737 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTION TO SHAREHOLDERS FROM Net investment income -- (995,520) -- (85,440) (1,302,880) (541,360) Return of capital -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions -- (995,520) -- (85,440) (1,302,880) (541,360) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 37,306,680 14,397,765 5,639,015 22,018,805 68,863,869 72,734,520 Cost of shares redeemed (2,786,457) (5,989,634) -- -- (26,637,324) (690,296) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from capital share transactions 34,520,223 8,408,131 5,639,015 22,018,805 42,226,545 72,044,224 - ------------------------------------------------------------------------------------------------------------------------------------ Total increase (decrease) in net assets 46,906,271 (11,361,648) 9,834,315 15,066,001 38,741,990 77,172,601 NET ASSETS Beginning of period 45,915,076 57,276,724 15,066,001 -- 77,172,601 -- - ------------------------------------------------------------------------------------------------------------------------------------ End of period $ 92,821,347 $ 45,915,076 $ 24,900,316 $ 15,066,001 $ 115,914,591 $ 77,172,601 ==================================================================================================================================== Accumulated undistributed net investment income (loss) at end of period $ 506,192 $ 221,740 $ 550,136 $ 259,787 $ 129,933 $ 647,123 ==================================================================================================================================== CHANGES IN SHARES OUTSTANDING Shares sold 2,320,000 1,040,000 320,000 1,040,000 5,120,000 6,000,000 Shares redeemed (160,000) (480,000) -- -- (2,240,000) (80,000) Shares outstanding, beginning of period 3,160,000 2,600,000 1,040,000 -- 5,920,000 -- - ------------------------------------------------------------------------------------------------------------------------------------ Shares outstanding, end of period 5,320,000 3,160,000 1,360,000 1,040,000 8,800,000 5,920,000 ====================================================================================================================================
1 Commencement of investment operations -- June 12, 2008 2 Commencement of investment operations -- August 25, 2008 See notes to financial statements. Semiannual Report | November 30, 2009 | 53 Claymore Exchange-Traded Fund Trust 2 | STATEMENT OF CHANGES IN NET ASSETS continued CLAYMORE/ROBB REPORT GLOBAL LUXURY INDEX ETF (ROB) ------------------------------ FOR THE SIX MONTHS ENDED FOR THE YEAR NOVEMBER 30, 2009 ENDED (UNAUDITED) MAY 31, 2009 - -------------------------------------------------------------------------------- INCREASE IN NET ASSETS RESULTING FROM OPERATIONS Net investment income (loss) $ 22,839 $ 67,586 Net realized gain (loss) (60,520) (1,300,083) Net unrealized appreciation (depreciation) 1,314,155 (2,442,787) - -------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,276,474 (3,675,284) - -------------------------------------------------------------------------------- DISTRIBUTION TO SHAREHOLDERS FROM Net investment income -- (92,160) Return of capital -- -- - -------------------------------------------------------------------------------- Total distributions -- (92,160) - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 1,379,517 -- Cost of shares redeemed -- (923,218) - -------------------------------------------------------------------------------- Net increase (decrease) from capital share transactions 1,379,517 (923,218) - -------------------------------------------------------------------------------- Total increase (decrease) in net assets 2,655,991 (4,690,662) - -------------------------------------------------------------------------------- NET ASSETS Beginning of period 4,189,304 8,879,966 - -------------------------------------------------------------------------------- End of period $ 6,845,295 $ 4,189,304 ================================================================================ Accumulated undistributed net investment income (loss) at end of period $ 56,269 $ 33,430 ================================================================================ CHANGES IN SHARES OUTSTANDING Shares sold 80,000 -- Shares redeemed -- (80,000) Shares outstanding, beginning of period 320,000 400,000 - -------------------------------------------------------------------------------- Shares outstanding, end of period 400,000 320,000 ================================================================================ See notes to financial statements. 54 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | STATEMENT OF CHANGES IN NET ASSETS continued
CLAYMORE/ZACKS CLAYMORE/SWM CANADIAN CLAYMORE/ZACKS INTERNATIONAL MULTI-ASSET ENERGY INCOME INDEX ETF (ENY) COUNTRY ROTATION ETF (CRO) INCOME INDEX ETF (HGI) -------------------------------- ------------------------------- ------------------------------- FOR THE FOR THE FOR THE SIX MONTHS SIX MONTHS SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR NOVEMBER 30, 2009 ENDED NOVEMBER 30, 2009 ENDED NOVEMBER 30, 2009 ENDED (UNAUDITED) MAY 31, 2009 (UNAUDITED) MAY 31, 2009 (UNAUDITED) MAY 31, 2009 - ------------------------------------------------------------------------------------------------------------------------------------ INCREASE IN NET ASSETS RESULTING FROM OPERATIONS Net investment income (loss) $ 868,694 $ 1,825,359 $ 54,148 $ 189,051 $ 437,784 $ 576,806 Net realized gain (loss) (10,776,544) (5,516,116) (789,233) (3,218,658) 3,702,561 (6,288,439) Net unrealized appreciation (depreciation) 18,941,301 (13,091,889) 1,800,749 (845,691) 2,244,143 2,505,286 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 9,033,451 (16,782,646) 1,065,664 (3,875,298) 6,384,488 (3,206,347) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTION TO SHAREHOLDERS FROM Net investment income (828,880) (1,686,160) -- (240,000) (412,800) (633,473) Return of capital -- -- -- -- -- (65,127) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions (828,880) (1,686,160) -- (240,000) (412,800) (698,600) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 25,149,856 30,113,303 -- -- 24,084,730 8,981,783 Cost of shares redeemed (3,422,151) (7,956,217) -- -- (9,600,233) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from capital share transactions 21,727,705 22,157,086 -- -- 14,484,497 8,981,783 - ------------------------------------------------------------------------------------------------------------------------------------ Total increase (decrease) in net assets 29,932,276 3,688,280 1,065,664 (4,115,298) 20,456,185 5,076,836 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS Beginning of period 37,790,749 34,102,469 5,648,502 9,763,800 14,311,174 9,234,338 - ------------------------------------------------------------------------------------------------------------------------------------ End of period $ 67,723,025 $ 37,790,749 $ 6,714,166 $ 5,648,502 $ 34,767,359 $ 14,311,174 ==================================================================================================================================== Accumulated undistributed net investment income (loss) at end of period $ 525,837 $ 486,023 $ 113,793 $ 59,645 $ 3,537 (21,447) ==================================================================================================================================== CHANGES IN SHARES OUTSTANDING Shares sold 1,680,000 1,920,000 -- -- 1,600,000 600,000 Shares redeemed (240,000) (320,000) -- -- (600,000) -- Shares outstanding, beginning of period 2,680,000 1,080,000 400,000 400,000 1,000,000 400,000 - ------------------------------------------------------------------------------------------------------------------------------------ Shares outstanding, end of period 4,120,000 2,680,000 400,000 400,000 2,000,000 1,000,000 ====================================================================================================================================
See notes to financial statements. Semiannual Report | November 30, 2009 | 55 Claymore Exchange-Traded Fund Trust 2 | Financial HIGHLIGHTS |
TAO | Claymore/AlphaShares China Real Estate ETF FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR DECEMBER 18, 2007** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 ENDED THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 MAY 31, 2008 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 16.87 $ 20.68 $ 23.50 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS Net investment income (a) 0.16 0.39 0.17 Net realized and unrealized gain (loss) 1.67 (3.82) (2.99) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 1.83 (3.43) (2.82) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income -- (0.38) -- ==================================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 18.70 $ 16.87 $ 20.68 ==================================================================================================================================== MARKET VALUE, END OF PERIOD $ 18.78 $ 17.27 $ 20.91 ==================================================================================================================================== TOTAL RETURN*(b) Net asset value 10.85% -15.44% -12.00% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 84,517 $ 39,802 $ 28,949 Ratio of net expenses to average net assets* 0.70%(c) 0.78% 0.95%(c) Ratio of net investment income to average net assets* 1.74%(c) 3.00% 1.64%(c) Portfolio turnover rate (d) 3% 47% 1% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of total expenses to average net assets 0.89%(c) 1.74% 1.50%(c) Ratio of net investment income to average net assets 1.55%(c) 2.04% 1.09%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. 56 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued HAO | Claymore/AlphaShares China Small Cap Index ETF
FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR JANUARY 30, 2008** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 ENDED THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 MAY 31, 2008 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 20.70 $ 24.04 $ 24.34 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) (a) 0.02 0.27 0.27 Net realized and unrealized gain (loss) 5.20 (3.51) (0.57) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 5.22 (3.24) (0.30) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income -- (0.10) -- ==================================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 25.92 $ 20.70 $ 24.04 ==================================================================================================================================== MARKET VALUE, END OF PERIOD $ 26.12 $ 21.22 $ 24.39 ==================================================================================================================================== TOTAL RETURN *(B) Net asset value 25.22% -13.27% -1.23% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 302,750 $ 62,938 $ 11,540 Ratio of net expenses to average net assets* 0.75%(c) 0.88% 1.00%(c) Ratio of net investment income (loss) to average net assets* 0.18%(c) 1.86% 3.44%(c) Portfolio turnover rate (d) 9% 65% 1% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of total expenses to average net assets 0.87%(c) 1.64% 3.16%(c) Ratio of net investment income (loss) to average net assets 0.06%(c) 1.10% 1.28%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. Semiannual Report | November 30, 2009 | 57 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued EXB | Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF
FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR JUNE 27, 2007** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 ENDED THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 MAY 31, 2008 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 12.46 $ 21.68 $ 24.56 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) (a) 0.08 0.32 0.20 Net realized and unrealized gain (loss) 0.89 (8.87) (3.06) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 0.97 (8.55) (2.86) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income -- (0.67) (0.02) ==================================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 13.43 $ 12.46 $ 21.68 ==================================================================================================================================== MARKET VALUE, END OF PERIOD $ 13.29 $ 12.28 $ 21.75 ==================================================================================================================================== TOTAL RETURN*(B) Net asset value 7.79% -38.56% -11.65% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 3,224 $ 2,989 $ 17,345 Ratio of net expenses to average net assets* 0.70%(c) 0.70% 0.87%(c) Ratio of net investment income to average net assets* 1.27%(c) 2.32% 0.90%(c) Portfolio turnover rate (d) 25% 66% 83% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of expenses to average net assets 4.44%(c) 2.55% 1.43%(c) Ratio of net investment income (loss) to average net assets -2.47%(c) 0.47% 0.34%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. 58 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued CUT | Claymore/Beacon Global Timber Index ETF
FOR THE PERIOD FOR THE FOR THE NOVEMBER 9, SIX MONTHS ENDED YEAR 2007** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 ENDED THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 MAY 31, 2008 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.53 $ 22.03 $ 24.91 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) (a) 0.07 0.47 0.33 Net realized and unrealized gain (loss) 2.85 (7.56) (3.13) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 2.92 (7.09) (2.80) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income -- (0.41) (0.08) ==================================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 17.45 $ 14.53 $ 22.03 ==================================================================================================================================== MARKET VALUE, END OF PERIOD $ 17.56 $ 14.69 $ 22.25 ==================================================================================================================================== TOTAL RETURN* (B) Net asset value 20.10% -31.77% -11.25% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 92,821 $ 45,915 $57,277 Ratio of net expenses to average net assets* 0.70%(c) 0.71% 0.95%(c) Ratio of net investment income to average net assets* 0.82%(c) 3.36% 2.72%(c) Portfolio turnover rate (d) 33% 58% 23% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of total expenses to average net assets 0.85%(c) 1.08% 1.43%(c) Ratio of net investment income (loss) to average net assets 0.67%(c) 2.99% 2.24%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. Semiannual Report | November 30, 2009 | 59 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued FRN | Claymore/BNY Mellon Frontier Markets ETF
FOR THE FOR THE PERIOD SIX MONTHS ENDED JUNE 12, 2008** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 - ------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 14.49 $ 24.34 - ------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) (a) 0.25 0.36 Net realized and unrealized gain (loss) 3.57 (10.12) - ------------------------------------------------------------------------------------------------------------------- Total from investment operations 3.82 (9.76) - ------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income -- (0.09) =================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 18.31 $ 14.49 =================================================================================================================== MARKET VALUE, END OF PERIOD $ 18.55 $ 14.48 =================================================================================================================== TOTAL RETURN*(B) Net asset value 26.36% -40.03% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 24,900 $ 15,066 Ratio of net expenses to average net assets* 0.71%(c) 0.95%(c) Ratio of net investment income to average net assets* 2.95%(c) 2.65%(c) Portfolio turnover rate (d) 14% 29% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of expenses to average net assets 1.23%(c) 2.22%(c) Ratio of net investment income (loss) to average net assets 2.43%(c) 1.38%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. 60 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued SEA | Claymore/Delta Global Shipping Index ETF
FOR THE PERIOD FOR THE AUGUST 25, SIX MONTHS ENDED 2008** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 - ------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.04 $ 25.12 - ------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS Net investment income (a) 0.11 0.73 Net realized and unrealized gain (loss) 0.19 (12.33) - ------------------------------------------------------------------------------------------------------------------- Total from investment operations 0.30 (11.60) - ------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income (0.17) (0.48) =================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 13.17 $ 13.04 =================================================================================================================== MARKET VALUE, END OF PERIOD $ 13.21 $ 13.70 =================================================================================================================== TOTAL RETURN *(B) Net asset value 2.41% -45.89% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 115,915 $ 77,173 Ratio of net expenses to average net assets* 0.74%(c) 0.95%(c) Ratio of net investment income to average net assets* 1.71%(c) 9.24%(c) Portfolio turnover rate (d) 17% 52% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of total expenses to average net assets 0.87%(c) 1.78%(c) Ratio of net investment income to average net assets 1.58%(c) 8.41%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. Semiannual Report | November 30, 2009 | 61 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued ROB | Claymore/Robb Report Global Luxury Index ETF
FOR THE FOR THE PERIOD SIX MONTHS ENDED FOR THE JULY 30, 2007** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 YEAR ENDED THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 MAY 31, 2008 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 13.09 $ 22.20 $ 23.80 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) (a) 0.07 0.19 0.14 Net realized and unrealized gain (loss) 3.95 (9.01) (1.70) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 4.02 (8.82) (1.56) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income -- (0.29) (0.04) ==================================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 17.11 $ 13.09 $ 22.20 ==================================================================================================================================== MARKET VALUE, END OF PERIOD $ 16.92 $ 12.96 $ 22.28 ==================================================================================================================================== TOTAL RETURN* (B) Net asset value 30.71% -39.58% -6.57% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 6,845 $ 4,189 $ 8,880 Ratio of net expenses to average net assets* 0.75%(c) 0.75% 1.21%(c) Ratio of net investment income to average net assets* 0.92%(c) 1.32% 0.73%(c) Portfolio turnover rate (d) 3% 14% 26% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of total expenses to average net assets 4.78%(c) 4.75% 3.81%(c) Ratio of net investment income (loss) to average net assets -3.11%(c) -2.68% -1.87%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. 62 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued ENY | Claymore/SWM Canadian Energy Income Index ETF
FOR THE FOR THE PERIOD SIX MONTHS ENDED FOR THE JULY 3, 2007** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 YEAR ENDED THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 MAY 31, 2008 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.10 $ 31.58 $ 25.05 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) (a) 0.26 1.08 0.85 Net realized and unrealized gain (loss) 2.34 (17.49) 6.41 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 2.60 (16.41) 7.26 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income (0.26) (1.07) (0.73) ==================================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 16.44 $ 14.10 $ 31.58 ==================================================================================================================================== MARKET VALUE, END OF PERIOD $ 16.40 $ 14.38 $ 31.71 ==================================================================================================================================== TOTAL RETURN *(B) Net asset value 18.81% -51.89% 29.62% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 67,723 $ 37,791 $ 34,102 Ratio of net expenses to average net assets* 0.70%(c) 0.71% 0.83%(c) Ratio of net investment income (loss) to average net assets* 3.47%(c) 7.03% 3.57%(c) Portfolio turnover rate (d) 63% 68% 31% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of total expenses to average net assets 0.91%(c) 1.23% 1.24%(c) Ratio of net investment income (loss) to average net assets 3.26%(c) 6.51% 3.16%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. Semiannual Report | November 30, 2009 | 63 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued CRO | Claymore/Zacks Country Rotation ETF
FOR THE FOR THE PERIOD SIX MONTHS ENDED FOR THE JULY 11, 2007** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 YEAR ENDED THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 MAY 31, 2008 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.12 $ 24.41 $ 25.08 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) (a) 0.14 0.47 0.59 Net realized and unrealized gain (loss) 2.53 (10.16) (1.08) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 2.67 (9.69) (0.49) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income -- (0.60) (0.18) ==================================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 16.79 $ 14.12 $ 24.41 ==================================================================================================================================== MARKET VALUE, END OF PERIOD $ 16.83 $ 14.20 $ 24.60 ==================================================================================================================================== TOTAL RETURN*(B) Net asset value 18.91% -39.47% -2.00% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 6,714 $ 5,649 $ 9,764 Ratio of net expenses to average net assets* 0.70%(c) 0.70% 1.24%(c) Ratio of net investment income to average net assets* 1.73%(c) 3.07% 2.53%(c) Portfolio turnover rate (d) 43% 170% 51% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of expenses to average net assets 2.98%(c) 3.06% 2.98%(c) Ratio of net investment income (loss) to average net assets -0.55%(c) 0.71% 0.79%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. 64 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | FINANCIAL HIGHLIGHTS continued HGI | Claymore/Zacks International Multi-Asset Income Index ETF
FOR THE FOR THE PERIOD SIX MONTHS ENDED FOR THE JULY 11, 2007** PER SHARE OPERATING PERFORMANCE NOVEMBER 30, 2009 YEAR ENDED THROUGH FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) MAY 31, 2009 MAY 31, 2008 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.31 $ 23.09 $ 24.98 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS Net investment income (loss) (a) 0.26 0.78 0.88 Net realized and unrealized gain (loss) 3.09 (8.61) (2.15) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 3.35 (7.83) (1.27) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income (0.28) (0.86) (0.62) Return of capital -- (0.09) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions to shareholders (0.28) (0.95) (0.62) ==================================================================================================================================== NET ASSET VALUE, END OF PERIOD $ 17.38 $ 14.31 $ 23.09 ==================================================================================================================================== MARKET VALUE, END OF PERIOD $ 17.72 $ 14.44 $ 24.00 ==================================================================================================================================== TOTAL RETURN*(B) Net asset value 23.65% -33.80% -5.02% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (thousands) $ 34,767 $ 14,311 $ 9,234 Ratio of net expenses to average net assets* 0.70%(c) 0.70% 1.10%(c) Ratio of net investment income (loss) to average net assets* 3.20%(c) 5.56% 4.26%(c) Portfolio turnover rate(d) 27% 114% 114% * If certain expenses had not been waived or reimbursed by the Adviser, total return would have been lower and the ratios would have been as follows: Ratio of total expenses to average net assets 1.18%(c) 1.98% 2.61%(c) Ratio of net investment income (loss) to average net assets 2.72%(c) 4.28% 2.75%(c)
** Commencement of investment operations. (a) Based on average shares outstanding during the period. (b) Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported at net asset value ("NAV"). Dividends and distributions are assumed to be reinvested at NAV. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Portfolio turnover is not annualized for periods less than one year and does not include securities received or delivered from processing creations or redemptions. See notes to financial statements. Semiannual Report | November 30, 2009 | 65 Claymore Exchange-Traded Fund Trust 2 | Notes to FINANCIAL STATEMENTSlNOVEMBER 30, 2009 (unaudited) Note 1 -- ORGANIZATION: Claymore Exchange-Traded Fund Trust 2 (the"Trust"), which is registered under the Investment Company Act of 1940, as amended (the"1940 Act"), is organized as an open-end, management investment company that was organized as a Delaware business trust on June 8, 2006. At the end of the period, the Trust consisted of 15 portfolios. The following 10 portfolios have a semi-annual reporting period-end on November 30, 2009:
Claymore/AlphaShares China Real Estate ETF "AlphaShares China Real Estate " Claymore/AlphaShares China Small Cap "AlphaShares China Small Cap" Index ETF Claymore/Beacon Global Exchanges, Brokers "Beacon Global Exchanges, Brokers & Asset & Asset Managers Index ETF Managers" Claymore/Beacon Global Timber Index ETF "Beacon Global Timber" Claymore/BNY Mellon Frontier Markets ETF "BNY Mellon Frontier Markets" Claymore/Delta Global Shipping Index ETF "Delta Global Shipping" Claymore/Robb Report Global Luxury Index ETF "Robb Report Global Luxury" Claymore/SWM Canadian Energy Income "SWM Canadian Energy Income" Index ETF Claymore/Zacks Country Rotation ETF "Zacks Country Rotation" Claymore/Zacks International Multi-Asset Income "Zacks International Multi-Asset Income" Index ETF
Each portfolio represents a separate series of the Trust (each a"Fund" or collectively the"Funds"). Each Fund's shares are listed and traded on the NYSE Arca, Inc. ("NYSE Arca"). The Funds' market prices may differ to some degree from the net asset value ("NAV") of the shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at NAV, only in a large specified number of shares; each called a "Creation Unit." Creation Units are issued and redeemed principally in-kind for securities included in the relevant index. Except when aggregated in Creation Units, shares are not individually redeemable securities of the Funds. The investment objective of each of the Funds is to replicate as closely as possible, before fees and expenses, the performance of the following market indices:
FUND INDEX AlphaShares China Real Estate AlphaShares China Real Estate Index AlphaShares China Small Cap AlphaShares China Small Cap Index Beacon Global Exchanges, Brokers & Asset Managers Beacon Global Exchanges, Brokers & Asset Managers Index Beacon Global Timber Beacon Global Timber Index BNY Mellon Frontier Markets BNY Mellon New Frontier DR Index Delta Global Shipping Delta Global Shipping Index Robb Report Global Luxury Robb Report Global Luxury Index SWM Canadian Energy Income Sustainable Canadian Energy Income Index Zacks Country Rotation Zacks Country Rotation Index Zacks International Multi-Asset Income Zacks International Multi-Asset Income Index
Note 2 -- ACCOUNTING POLICIES: The preparation of the financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates. In June 2009, the Financial Accounting Standards Board ("FASB") established the FASB Accounting Standards CodificationTM ("ASC") as the single source of authoritative accounting principles reorganized by the FASB in preparation of financial statements in conformity with GAAP. The ASC superseded existing non-grandfathered, non-U.S. Securities and Exchange Commission ("SEC") accounting and reporting standards. The ASC did not change GAAP but rather organized it into a hierarchy where all guidance with the ASC carried an equal level of authority. The ASC became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The implementation of ASC did not have a material effect of the Fund's financial statements. The following is a summary of the significant accounting policies followed by the Funds. (A) VALUATION OF INVESTMENTS Equity securities are valued at the last reported sale price on the principal exchange or on the principal over-the-counter market on which such securities are traded, as of the close of regular trading on the NYSE on the day the securities are being valued or, if there are no sales, at the mean of the most recent bid and asked prices. Equity securities that are traded primarily on the NASDAQ Stock Market are valued at the NASDAQ Official Closing Price. Events occurring after the close of trading on non-United States exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the NYSE. Debt securities are valued at the mean between the last available bid and ask price for such securities or, if such prices are not available, at prices for securities of comparable maturity, quality and type. Short-term securities with maturities of 60 days or less at time of purchase are valued at amortized cost, which approximates market value. For those securities where quotations or prices are not available, the valuations are determined in accordance with procedures established in good faith by the Board of Trustees. Valuations in accordance with these procedures are intended to reflect each security's (or asset's) "fair value". Such "fair value" is the amount that the Fund might reasonably expect to receive for the security (or asset) upon its current sale. Each such determination should be based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the initial cost of the security, (iii) the existence of any contractual restrictions on the security's disposition, (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies, (v) quotations or evaluated prices from broker-dealers and/or pricing services, (vi) information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange traded securities), (vii) an analysis of the company's financial statements, and (viii) an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold (e.g. the existence of pending merger activity, public offerings or tender offers that might affect the value of the security). The Funds adopted ASC 820, Fair Value Measurements and Disclosures ("ASC820") (formerly known as the Statement of Financial Accounting Standard ("SFAS") No. 157) effective June 1, 2008. In accordance with ASC820, fair value is defined as the price that the Funds would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC820 establishes three different categories for valuations. Level 1 valuations are those based upon quoted prices in active markets. Level 2 valuations are those based upon quoted prices in inactive markets or based upon significant observable inputs (e.g. yield curves; benchmark interest rates; indices). Level 3 valuations are those based upon unobservable inputs (e.g. discounted cash flow analysis; non-market based methods used 66 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | NOTES TO FINANCIAL STATEMENTS (unaudited) continued to determine fair valuation). The following table represents the Funds' investments carried on the Statement of Assets and Liabilities by caption and by level within the fair value hierarchy as of November 30, 2009: ALPHASHARES CHINA REAL ESTATE DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks: Financials $83,760 $78 -- $83,838 Industrials 529 -- -- 529 - --------------------------------------------------------------- Total $84,289 $78 $ -- $84,367 - --------------------------------------------------------------- ALPHASHARES CHINA SMALL CAP DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks: Consumer Discretionary $ 49,182 $ -- $ -- $ 49,182 Consumer Staples 22,186 -- -- 22,186 Energy 13,598 -- -- 13,598 Financials 46,222 -- -- 46,222 Health Care 10,510 -- -- 10,510 Industrials 67,904 -- -- 67,904 Information Technology 51,449 -- -- 51,449 Materials 36,169 -- * 36,169 Telecommunication Services 1,742 -- -- 1,742 Utilities 3,747 -- -- 3,747 - --------------------------------------------------------------- Total $302,709 $ -- $ -- $302,709 - --------------------------------------------------------------- *See Portfolio of Investments for detail on Level 3 fair valued security with zero market value. There was no share activity or change in unrealized gain/loss on the Level 3 security for the period ended November 30, 2009. BEACON GLOBAL EXCHANGES, BROKERS & ASSET MANAGERS DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks: Financials $3,180 $ * $ ** $3,180 Master Limited Partnerships 41 -- -- 41 - ------------------------------------------------------------------- Total $3,221 $ -- $ -- $3,221 - ------------------------------------------------------------------- *Market value is less than minimum figure disclosed. **See Portfolio of Investments for detail on Level 3 fair valued security with zero market value. There was no share activity or change in unrealized gain/loss on the Level 3 security for the period ended November 30, 2009. BEACON GLOBAL TIMBER DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks $92,756 $ -- $ -- $92,756 - -------------------------------------------------------------- Total $92,756 $ -- $ -- $92,756 - -------------------------------------------------------------- BNY MELLON FRONTIER MARKETS DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks: Consumer Discretionary $ -- $ 22 $ -- $ 22 Consumer Staples 902 -- -- 902 Energy 2,997 55 -- 3,052 Financials 5,319 2,534 -- 7,853 Industrials 1,727 -- -- 1,727 Materials 4,131 -- -- 4,131 Telecommunication Services 2,316 343 -- 2,659 Utilities 3,336 -- -- 3,336 Preferred Stocks 1,188 -- -- 1,188 - -------------------------------------------------------------- Total $ 21,916 $2,954 $ -- $24,870 - -------------------------------------------------------------- DELTA GLOBAL SHIPPING DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks $115,823 $ -- $ -- $115,823 - --------------------------------------------------------------- Total $115,823 $ -- $ -- $115,823 - --------------------------------------------------------------- ROBB REPORT GLOBAL LUXURY DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks $6,565 $ -- $ -- $6,565 Preferred Stocks 268 -- -- 268 Rights -- 5 -- 5 - -------------------------------------------------------------- Total $6,833 $ 5 $ -- $6,838 - -------------------------------------------------------------- SWM CANADIAN ENERGY INCOME DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stock $38,770 $ -- $ -- $38,770 Income Trusts 28,587 -- -- 28,587 - -------------------------------------------------------------- Total $67,357 $ -- $ -- $67,357 - -------------------------------------------------------------- Semiannual Report | November 30, 2009 | 67 Claymore Exchange-Traded Fund Trust 2 | NOTES TO FINANCIAL STATEMENTS (unaudited) continued ZACKS COUNTRY ROTATION DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks $6,641 $ -- $ -- $6,641 Exchange Traded Funds 56 -- -- 56 - -------------------------------------------------------------- Total $6,697 $ -- $ -- $6,697 ============================================================== ZACKS INTERNATIONAL MULTI-ASSET INCOME DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL (value in $000s) Assets: Common Stocks $27,464 $ -- $ -- $27,464 Preferred Stocks 1,586 -- -- 1,586 Income Trusts 2,155 -- -- 2,155 Closed End Funds 3,462 -- -- 3,462 - -------------------------------------------------------------- Total $34,667 $ -- $ -- $34,667 ============================================================== (b) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Discounts or premiums on debt securities purchased are accreted or amortized to interest income over the lives of the respective securities using the effective interest method. The Funds record the character of dividends received from master limited partnerships ("MLPs") based on estimates made at the time such distributions are received. These estimates are based upon a historical review of information available from each MLP and other industry sources. The characterization of the estimate may subsequently be revised based on information received from MLPs after their tax reporting periods conclude. REIT distributions received by a Fund are generally comprised of ordinary income, long-term and short-term capital gains and return of capital. The actual character of amounts received during the year, are not known until after the fiscal year end. A Fund records the character of distributions received from REITs during the year based on historical information available. A Fund's characterization may be subsequently revised based on information received from REITs after their tax reporting periods conclude. (c) CURRENCY TRANSLATION Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the bid and asked price of respective exchange rates on the last day of the period. Purchases and sales of investments denominated in foreign currencies are translated at the exchange rate on the date of the transaction. Foreign exchange gain or loss resulting from holding of a foreign currency, expiration of a currency exchange contract, difference in exchange rates between the trade date and settlement date of an investment purchased or sold, and the difference between dividends actually received compared to the amount shown in a Fund's accounting records on the date of receipt are included as net realized gains or losses on foreign currency transactions in the Fund's Statement of Operations. Foreign exchange gain or loss on assets and liabilities, other than investments, are included in unrealized appreciation/(depreciation) on foreign currency translations. (d) DISTRIBUTIONS The Funds intend to pay substantially all of their net investment income to Shareholders through annual distributions, except for Delta Global Shipping, SWM Canadian Energy Income and Zacks International Multi-Asset Income which will pay a quarterly distribution. In addition, the Funds intend to distribute any capital gains to Shareholders as capital gain dividends at least annually. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. (e) OFFERING COSTS For BNY Mellon Frontier Markets and Delta Global Shipping, offering costs are being accrued at an annual rate of the lesser of actual costs incurred or 0.25% of average daily net assets over the first year of operations. For these two Funds, Claymore Advisors, LLC has agreed to pay all offering costs in excess of 0.25% . Claymore Advisors, LLC has agreed to pay all organizational expenses of each Fund incurred prior to the commencement of operations. (f) SECURITIES LENDING Each Fund may lend portfolio securities to certain creditworthy borrowers, including the Funds' securities lending agent. The loans are collateralized at all times by cash and/or high grade debt obligations in an amount at least equal to 102% of the market value of domestic securities loaned and 105% of foreign securities loaned as determined at the close of business on the preceding business day. Each Fund receives compensation for lending securities from interest or dividends earned on the cash, cash equivalents or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. The borrower pays to the Funds an amount equal to any dividends or interest received on loaned securities. The Funds retain all or a portion of the interest received on investment of cash collateral or receives a fee from the borrower. Lending portfolio securities could result in a loss or delay in recovering each Fund's securities if the borrower defaults. The securities lending income earned by the Funds is disclosed on the Statement of Operations. None of the Funds have lent securities outstanding as of November 30, 2009. (g) SUBSEQUENT EVENTS Effective November 30, 2009, the Fund adopted ASC 855, Subsequent Events ("ASC855") (formerly known as SFAS No. 165). ASC855 requires an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the statement of assets and liabilities. ASC855 is intended to establish general standards of accounting and for disclosure of events that occur after the statement of assets and liabilities date but before the financial statements are issued or are available to be issued. The Fund has performed an evaluation of subsequent events through January 26, 2010, which is the date the financial statements were issued. Note 3 -- INVESTMENT ADVISORY AGREEMENT, SUB-ADVISORY AGREEMENT AND OTHER AGREEMENTS: Pursuant to an Investment Advisory Agreement (the"Agreement") between the Trust, on behalf of each Fund, and Claymore Advisors, LLC (the "Adviser"),the Adviser manages the investment and reinvestment of each Fund's assets and administers the affairs of each Fund to the extent requested by the Board of Trustees. 68 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | NOTES TO FINANCIAL STATEMENTS (unaudited) continued Pursuant to the Agreement, each Fund pays the Adviser an advisory fee payable on a monthly basis at the annual rate set forth below based on each Fund's average daily net assets: FUND RATE ======================================================= AlphaShares China Real Estate 0.50% AlphaShares China Small Cap 0.55% Beacon Global Exchanges, Brokers & Asset Managers 0.50% Beacon Global Timber 0.50% BNY Mellon Frontier Markets 0.50% Delta Global Shipping 0.50% Robb Report Global Luxury 0.50% SWM Canadian Energy Income 0.50% Zacks Country Rotation 0.50% Zacks International Multi-Asset Income 0.50% On July 17, 2009, Claymore Group Inc., the parent of the Adviser, entered into an Agreement and Plan of Merger between and among Claymore Group Inc., Claymore Holdings, LLC and GuggClay Acquisition, Inc., (with the latter two entities being wholly-owned, indirect subsidiaries of Guggenheim Partners, LLC ("Guggenheim")). The transaction closed on October 14, 2009 (the "Effective Date") whereby GuggClay Acquisition, Inc. merged into Claymore Group Inc., the surviving entity. This transaction resulted in a change-of-control whereby Claymore Group Inc. and its subsidiaries, including the Adviser, became indirect, wholly-owned subsidiaries of Guggenheim. The transaction is not expected to affect the daily operations of the Funds or the investment management activities of the Adviser. Under the 1940 Act, the consummation of this transaction resulted in the automatic termination of the Advisory Agreement. Accordingly, on September 28, 2009, the Board of Trustees approved an interim investment advisory agreement between the Trust and the Adviser (the "Interim Advisory Agreement"). The Interim Advisory Agreement took effect as of the Effective Date and will terminate upon the earlier of: (a) 150 calendar days after the Effective Date or (b) the approval of a new investment advisory agreement by the shareholders of each Fund. In addition, the advisory fees earned by the Adviser pursuant to the Interim Advisory Agreement will be held in an interest bearing escrow account with the Trust's custodian during the term of the Interim Advisory Agreement. If the Fund's shareholders approve a new advisory agreement with the Adviser prior to the expiration of the term of the Interim Advisory Agreement, the amount in the escrow account (including any interest earned) with respect to the Fund shall be paid to the Adviser. If the Fund's shareholders do not approve a new advisory agreement with the Adviser prior to the expiration of the term of the Interim Advisory Agreement, the Adviser shall be paid, out of the escrow account with respect to the Fund, the lesser of (i) the Adviser's costs incurred in providing the services under the Interim Advisory Agreement (including any interest earned on that amount while in escrow) with respect to the Fund; or (ii) the total amount in the escrow account (including any interest earned) with respect to the Fund. Other than the effective dates and the provisions set forth above regarding the advisory fees' placement into an escrow account, the terms and conditions of the Interim Advisory Agreement are substantively identical to those of the Advisory Agreement. On September 28, 2009, the Board of Trustees approved a new investment advisory agreement between the Trust and the Adviser (the"New Advisory Agreement") and recommended that the New Advisory Agreement be submitted to the shareholders of each Fund for their approval. The New Advisory Agreement will take effect with respect to each Fund upon its approval by the shareholders of the Fund and will have an initial term of one year. Thereafter, the New Advisory Agreement will continue in effect only if its continuance is approved by the Board of Trustees. Other than effective dates, there are no material differences between the terms of the New Advisory Agreement and those of the Advisory Agreement. On January 12, 2010, shareholders of the Claymore/Zacks Country Rotation ETF and Claymore/Beacon Global Timber Index ETF approved the New Advisory Agreement on behalf of such Fund. Under a separate Fund Administration agreement, Claymore Advisors, LLC provides Fund Administration services to the Funds. Claymore Advisors, LLC receives a fund administration fee payable monthly at the annual rate set forth below as a percentage of the average daily net assets of each Fund: NET ASSETS RATE ================================================ First $200,000,000 0.0275% Next $300,000,000 0.0200% Next $500,000,000 0.0150% Over $1,000,000,000 0.0100% For the period ended November 30, 2009, each Fund recognized Fund Administration expenses and waived Fund Administration expenses as follows:
FUND ADMINISTRATION FUND ADMINISTRATION EXPENSE EXPENSE WAIVED ================================================================================================= AlphaShares China Real Estate $ 10,026 $ -- AlphaShares China Small Cap 23,009 -- Beacon Global Exchanges, Brokers & Asset Managers 440 440 Beacon Global Timber 9,610 -- BNY Mellon Frontier Markets 2,711 1,588 Delta Global Shipping 12,638 -- Robb Report Global Luxury 682 682 SWM Canadian Energy Income 6,882 -- Zacks Country Rotation 859 859 Zacks International Multi-Asset Income 3,762 --
The Bank of New York Mellon ("BNY") acts as the Funds' custodian, accounting agent and transfer agent. As custodian, BNY is responsible for the custody of the Funds' assets. As accounting agent, BNY is responsible for maintaining the books and records of the Funds. As transfer agent, BNY is responsible for performing transfer agency services for the Funds. The Funds' Adviser has contractually agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expense, a portion of the Fund's licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Fund's business) from exceeding the following percentages of average net assets per year, at least until December 31, 2012: FUND RATE ======================================================= AlphaShares China Real Estate 0.65% AlphaShares China Small Cap 0.70% Beacon Global Exchanges, Brokers & Asset Managers 0.65% Beacon Global Timber 0.65% BNY Mellon Frontier Markets 0.65% Delta Global Shipping 0.65% Robb Report Global Luxury 0.70% SWM Canadian Energy Income 0.65% Zacks Country Rotation 0.65% Zacks International Multi-Asset Income 0.65% Amounts owed to each Fund from the Adviser are shown in the Statement of Assets and Liabilities. Semiannual Report | November 30, 2009 | 69 Claymore Exchange-Traded Fund Trust 2 | NOTES TO FINANCIAL STATEMENTS (unaudited) continued The Trust and the Adviser have entered into an Expense Reimbursement Agreement in which for a period of five years subsequent to each Fund's commencement of operations, the Adviser may recover from the Fund fees and expenses waived or reimbursed during the prior three years if the Fund's expense ratio, including the recovered expenses, falls below the expense cap. For the period ended November 30, 2009, the Adviser waived fees and assumed the following fees and expenses:
POTENTIALLY RECOVERABLE EXPENSES EXPIRING MAY31, - ------------------------------------------------------------------------------------ ADVISORY FEES EXPENSES WAIVED ASSUMED 2011 2012 2013 ==================================================================================== AlphaShares China Real Estate $ 69,357 $ -- $ 70,959 $ 198,366 $ 69,357 AlphaShares China Small Cap 102,971 -- 60,641 160,181 102,971 Beacon Global Exchanges, Brokers & Asset Managers 7,998 51,843 121,096 143,860 59,841 Beacon Global Timber 51,130 -- 89,294 129,172 51,130 BNY Mellon Frontier Markets 49,288 1,588 -- 150,912 50,876 Delta Global Shipping 58,775 -- -- 106,746 58,755 Robb Report Global Luxury 12,392 87,428 175,921 204,569 99,820 SWM Canadian Energy Income 53,631 -- 105,078 135,980 53,631 Zacks Country Rotation 15,629 55,570 107,912 145,273 71,199 Zacks International Multi-Asset Income 64,979 -- 124,233 132,947 64,979
Certain officers and/or trustees of the Trust are officers and/or directors of the Adviser. The Trust does not compensate its officers and /or trustees who are officers or directors of the Adviser. LICENSING FEE AGREEMENTS: The Adviser has entered into licensing agreements on behalf of each Fund with the following Licensors:
FUND LICENSOR ==================================================================================================================== AlphaShares China Real Estate AlphaShares, LLC AlphaShares China Small Cap AlphaShares, LLC Beacon Global Exchanges, Brokers & Asset Managers Beacon Indexes LLC Beacon Global Timber Beacon Indexes LLC BNY Frontier Markets The Bank of New York Mellon Delta Global Shipping Delta Global Indices, LLC Robb Report Global Luxury CurtCo Robb Media, LLC, Publisher of Robb Report Magazine SWM Canadian Energy Income Sustainable Wealth Management, Ltd. Zacks Country Rotation Zacks Investment Research, Inc. Zacks International Multi-Asset Income Zacks Investment Research, Inc.
The above trademarks are trademarks owned by the respective Licensors. These trademarks have been licensed to the Adviser for use for certain purposes with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensors and the Licensors make no representation regarding the advisability of investing in shares of the Funds. Up to 5 basis points of licensing fees are excluded from the expense cap. Note 4 -- FEDERAL INCOME TAXES: The Funds intend to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required. In addition, by distributing substantially all of its ordinary income and long-term capital gains, if any, during each calendar year, the Funds intend not to be subject to U.S. federal excise tax. At November 30, 2009, the cost of investments, accumulated unrealized appreciation/depreciation on investments, excluding foreign currency for federal income tax purposes were as follows:
NET TAX UNREALIZED COST OF GROSS GROSS NET TAX APPRECIATION INVESTMENTS TAX TAX UNREALIZED (DEPRECIATION) FOR TAX UNREALIZED UNREALIZED APPRECIATION ON FOREIGN PURPOSES APPRECIATION DEPRECIATION (DEPRECIATION) CURRENCY ================================================================================================= AlphaShares China Real Estate $77,990,804 $10,763,404 $(4,386,796) $6,376,608 $-- AlphaShares China Small Cap 261,427,427 45,972,526 (4,691,037) 41,281,489 (1) Beacon Global Exchanges, Brokers & Asset Managers 5,090,919 54,093 (1,923,854) (1,869,761) 140 Beacon Global Timber 81,012,917 13,704,797 (1,961,264) 11,743,533 9,953 BNY Mellon Frontier Markets 24,219,011 2,717,516 (2,066,851) 650,665 -- Delta Global Shipping 112,859,463 8,761,075 (5,798,012) 2,963,063 3,576 Robb Report Global Luxury 8,721,706 58,474 (1,941,743) (1,883,269) 627 SWM Canadian Energy Income 56,172,480 11,739,263 (554,785) 11,184,478 (955) Zacks Country Rotation 6,193,035 902,022 (398,217) 503,805 852 Zacks International Multi-Asset Income 30,260,111 5,009,720 (602,781) 4,406,939 643
Tax components of the following balances as of May 31, 2009 were as follows:
UNDISTRIBUTED ORDINARY UNDISTRIBUTED LONG-TERM INCOME/(ACCUMULATED GAINS/(ACCUMULATED ORDINARY LOSS) CAPITAL & OTHER LOSS) ======================================================================================= AlphaShares China Real Estate $ 320,104 $ (7,238,501) AlphaShares China Small Cap 371,936 (8,166,436) Beacon Global Exchanges, Brokers & Asset Managers 33,667 (6,019,874) Beacon Global Timber 221,740 (7,430,019) BNY Mellon Frontier Markets 259,787 (3,113,016) Delta Global Shipping 659,603 (5,934,321) Robb Report Global Luxury 33,430 (1,156,808) SWM Canadian Energy Income 349,220 (5,532,505) Zacks Country Rotation 59,645 (3,154,390) Zacks International Multi-Asset Income (21,447) (6,767,397)
DISTRIBUTIONS TO SHAREHOLDERS: The tax character of distributions paid during the year ended May 31, 2009 was as follows: DISTRIBUTIONS PAID FROM ORDINARY INCOME ========================================================================= AlphaShares China Real Estate $ 566,840 AlphaShares China Small Cap 144,400 Beacon Global Exchanges, Brokers & Asset Managers 320,160 Beacon Global Timber 995,520 BNY Mellon Frontier Markets 85,440 Delta Global Shipping 541,360 Robb Report Global Luxury 92,160 SWM Canadian Energy Income 1,686,160 Zacks Country Rotation 240,000 Zacks International Multi-Asset Income 633,473 70 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 | NOTES TO FINANCIAL STATEMENTS (unaudited) continued DISTRIBUTIONS PAID FROM RETURN OF CAPITAL ============================================================== Zacks International Multi-Asset Income $ 65,127 At May 31, 2009, for federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by the regulations, to offset future capital gains through the years indicated. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. CAPITAL LOSS CAPITAL LOSS AVAILABLE AVAILABLE THROUGH 2016 THROUGH 2017 ================================================================================ AlphaShares China Real Estate $ -- $ 563,033 AlphaShares China Small Cap -- 212,550 Beacon Global Exchanges, Brokers & Asset Managers 735 4,028,500 Beacon Global Timber -- 4,028,500 BNY Mellon Frontier Markets -- 241,589 Delta Global Shipping -- 66,818 Robb Report Global Luxury 432 709,898 SWM Canadian Energy Income -- 3,706,876 Zacks Country Rotation -- 507,192 Zacks International Multi-Asset Income 434,730 2,191,498 Capital and foreign currency losses incurred after October 31 ("post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year. During the period ended May 31, 2009, the following Funds incurred and will elect to defer net capital and currency losses as follows:
POST-OCTOBER POST-OCTOBER FOREIGN CURRENCY CAPITAL LOSSES AND PFIC LOSSES ================================================================================== AlphaShares China Real Estate ($6,675,468) $-- AlphaShares China Small Cap (7,953,886) (5,978) Beacon Global Exchanges, Brokers & Asset Managers (1,990,639) (249) Beacon Global Timber (3,606,816) (41,366) BNY Mellon Frontier Markets (2,871,427) -- Delta Global Shipping (5,867,503) (31,824) Robb Report Global Luxury (446,478) -- SWM Canadian Energy Income (1,825,629) (15,473) Zacks Country Rotation (2,647,198) (24,885) Zacks International Multi-Asset Income (4,141,169) (21,447)
For all open tax years and all major jurisdictions, management of the Trust has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e. generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Trust is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Note 5 -- INVESTMENT TRANSACTIONS: For the period ended November 30, 2009, the cost of investments purchased and proceeds from sales of investments, excluding short-term investments and in-kind transactions, were as follows:
PURCHASES SALES =========================================================================================== AlphaShares China Real Estate $ 3,073,544 $ 2,396,113 AlphaShares China Small Cap 16,791,578 15,806,605 Beacon Global Exchanges, Brokers & Asset Managers 799,562 803,294 Beacon Global Timber 23,522,326 23,253,774 BNY Mellon Frontier Markets 3,373,584 2,716,477 Delta Global Shipping 15,565,837 15,838,109 Robb Report Global Luxury 154,379 129,530 SWM Canadian Energy Income 31,140,422 31,387,732 Zacks Country Rotation 2,748,074 2,704,862 Zacks International Multi-Asset Income 7,280,718 7,216,503
For the period ended November 30, 2009, in-kind transactions were as follows: PURCHASES SALES =========================================================================================== AlphaShares China Real Estate $ 37,723,226 $ -- AlphaShares China Small Cap 221,643,827 16,177,545 Beacon Global Exchanges, Brokers & Asset Managers -- -- Beacon Global Timber 37,256,047 2,697,172 BNY Mellon Frontier Markets 5,483,397 -- Delta Global Shipping 68,818,059 26,563,828 Robb Report Global Luxury 1,380,350 -- SWM Canadian Energy Income 25,202,526 3,408,854 Zacks Country Rotation -- -- Zacks International Multi-Asset Income 24,013,500 9,612,566
Note6-- CAPITAL: Shares are issued and redeemed by the Funds only in Creation Unit size aggregations of 80,000 to 200,000 shares. Such transactions are only permitted on an in-kind basis, with separate cash payment, which is balancing each component to equate the transaction to the net asset value per share of the Fund on the transaction date. Creation or Redemption transaction fees ranging from $500 to $7,000 are charged to those persons creating or redeeming Creation Units. An additional charge of up to four times the Creation or Redemption Transaction Fee may be imposed with respect to transactions effected outside of the usual process through the National Securities Clearing Corporation or to the extent that cash is used in lieu of securities to purchase Creation Units or redeem for cash. Note7-- DISTRIBUTION AGREEMENT: The Board of Trustees of the Trust has adopted a distribution and services plan (the"Plan") pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, each Fund is authorized to pay distribution fees in connection with the sale and distribution of its shares and pay service fees in connection with the provision of ongoing services to shareholders of each class and the maintenance of shareholder accounts in an amount up to 0.25% of its average daily net assets each year. No 12b-1 fees are currently paid by the Funds, and there are no current plans to impose these fees. No such fee may be paid in the future without further approval by the Board of Trustees. Semiannual Report | November 30, 2009 | 71 Claymore Exchange-Traded Fund Trust 2 | NOTES TO FINANCIAL STATEMENTS (unaudited) continued Note8 -- INDEMNIFICATIONS: In the normal course of business, the Funds enter into contracts that contain a variety of representations, which provide general indemnifications. Each Fund's maximum exposure under these arrangements is unknown, as this would require future claims that may be made against a Fund that have not yet occurred. However, the Funds expect the risk of loss to be remote. Note9 -- SUBSEQUENT EVENT: Subsequent to November 30, 2009, the Board of Trustees declared the following distributions payable on December 31, 2009 to shareholders of record on December 29, 2009. The dividend rates per common share were as follows: FUND RATE - ------------------------------------------------------------ AlphaShares China Real Estate $ 0.570 AlphaShares China Small Cap $ 0.030 Beacon Global Exchanges, Brokers & Assets Managers $ 0.350 Beacon Global Timber $ 0.049 BNY Mellon Frontier Markets $ 0.383 Delta Global Shipping $ 0.034 Robb Report Global Luxury $ 0.138 SWM Canadian Energy Income $ 0.236 Zacks Country Rotation $ 0.384 Zacks International Multi-Asset Income $ 0.166 72 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 Supplemental INFORMATION | (unaudited) TRUSTEES The Trustees of the Claymore Exchange-Traded Fund Trust 2 and their principal business occupations during the past five years:
NAME, ADDRESS*, YEAR TERM OF OFFICE** PRINCIPAL OCCUPATIONS DURING NUMBER OF FUNDS IN OF BIRTH AND POSITION(S) AND LENGTH OF THE PAST FIVE YEARS AND THE FUND COMPLEX*** OTHER DIRECTORSHIPS HELD WITH REGISTRANT TIME SERVED OTHER AFFILIATIONS OVERSEEN BY TRUSTEE HELD BY TRUSTEE ================================================================================================================================== INDEPENDENT TRUSTEES: ================================================================================================================================== Randall C. Barnes Since 2006 Private Investor (2001-present). Formerly, 44 None Year of Birth: 1951 Senior Vice President & Treasurer, PepsiCo, Trustee Inc. (1993-1997), President, Pizza Hut International (1991-1993) and Senior Vice President, Strategic Planning and New Business Development (1987-1990) of PepsiCo, Inc. (1987-1997). - ---------------------------------------------------------------------------------------------------------------------------------- Ronald A. Nyberg Since 2006 Partner of Nyberg & Cassioppi, LLC, a law firm 47 None Year of Birth: 1953 specializing in corporate law, estate planning Trustee and business transactions (2000-present). Formerly, Executive Vice President, General Counsel and Corporate Secretary of Van Kampen Investments (1982-1999). - ---------------------------------------------------------------------------------------------------------------------------------- Ronald E. Toupin, Jr. Since 2006 Retired. Formerly, Vice President, Manager and 44 None Year of Birth: 1958 Portfolio Manager of Nuveen Asset Management Trustee (1998-1999), Vice President of Nuveen Investment Advisory Corp. (1992-1999), Vice President and Manager of Nuveen Unit Investment Trusts (1991-1999), and Assistant Vice President and Portfolio Manager of Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999). - ----------------------------------------------------------------------------------------------------------------------------------
* Address for all Trustees: 2455 Corporate West Drive, Lisle, IL 60532 ** This is the period for which the Trustee began serving the Trust. Each Trustee is expected to serve an indefinite term, until his successor is elected. *** The Claymore Fund Complex consists of U.S. registered investment companies advised or serviced by Claymore Advisors, LLC or Claymore Securities, Inc. The Claymore Fund Complex is overseen by multiple Boards of Trustees. As of October 14, 2009, Nicholas Dalmaso resigned his position as Trustee for the Trust. Semiannual Report | November 30, 2009 | 73 Claymore Exchange-Traded Fund Trust 2 | SUPPLEMENTAL INFORMATION (unaudited) continued OFFICERS The Officers of the Trust and their principal occupations during the past five years:
NAME, ADDRESS*, YEAR OF BIRTH AND TERM OF OFFICE** AND PRINCIPAL OCCUPATIONS DURING THE PAST FIVE YEARS POSITION(S) HELD WITH REGISTRANT LENGTH OF TIME SERVED AND OTHER AFFILIATIONS =================================================================================================================================== OFFICERS: =================================================================================================================================== J. Thomas Futrell Since 2008 Senior Managing Director and Chief Investment Officer of Claymore Year of Birth: 1955 Advisors, LLC and Claymore Securities, Inc. Chief Executive Officer Chief Executive Officer of certain otherfunds in the Fund Complex (2008-present). Formerly, Managing Director of Research, Nuveen Asset Management (2000-2007). - ----------------------------------------------------------------------------------------------------------------------------------- Steven M. Hill Since 2006 Senior Managing Director of Claymore Advisors, LLC and Claymore Year of Birth: 1964 Securities, Inc. (2005-present); Formerly, Chief Financial Officer Chief Accounting Officer, of Claymore Group Inc. (2005-2006); Managing Director of Claymore Chief Financial Officer and Treasurer Advisors, LLC and Claymore Securities, Inc. (2003-2005); Formerly, Treasurer of Henderson Global Funds and Operations Manager for Henderson Global Investors (NA) Inc., (2002-2003); Managing Director, FrontPoint Partners LLC (2001-2002); Vice President, Nuveen Investments (1999-2001). - ----------------------------------------------------------------------------------------------------------------------------------- Kevin M. Robinson Since 2008 Senior Managing Director and General Counsel of Claymore Advisors, Year of Birth: 1959 LLC, Claymore Securities, Inc. and Claymore Group, Inc. Chief Legal Officer (2007-present). Chief Legal Officer of certain other funds in the Fund Complex. Formerly, Associate General Counsel and Assistant Corporate Secretary of NYSE Euronext, Inc. (2000-2007). - ----------------------------------------------------------------------------------------------------------------------------------- Bruce Saxon Since 2006 Vice President, Fund Compliance Officer of Claymore Group Inc. Year of Birth: 1957 (2006-present). Formerly, Chief Compliance Officer/Assistant Chief Compliance Officer Secretary of Harris Investment Management, Inc. (2003-2006). Director-Compliance of Harrisdirect LLC (1999-2003). - ----------------------------------------------------------------------------------------------------------------------------------- Melissa J. Nguyen Since 2006 Vice President, Assistant General Counsel of Claymore Group Inc. Year of Birth: 1978 (2005-present). Secretary of certain funds in the Fund Complex. Secretary Formerly, Associate, Vedder Price P.C. (2003-2005). - ----------------------------------------------------------------------------------------------------------------------------------- William H. Belden, III Since 2006 Managing Director of Claymore Advisors, LLC (2005-present). Year of Birth: 1965 Formerly, Vice President of Product Management at Northern Trust Vice President Global Investments (1999-2005). - ----------------------------------------------------------------------------------------------------------------------------------- Chuck Craig Since 2006 Managing Director (2006-present), Vice President (2003-2006) of Year of Birth: 1967 Claymore Advisors, LLC. Formerly, Assistant Vice President, First Vice President Trust Portfolios, L.P. (1999-2003). - -----------------------------------------------------------------------------------------------------------------------------------
* Address for all Officers: 2455 Corporate West Drive, Lisle, IL 60532 ** Officers serve at the pleasure of the Board of Trustees and until his or her successor is appointed and qualified or until his or her earlier resignation or removal. 74 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 Board Considerations Regarding the Annual Review of the INVESTMENT ADVISORY AGREEMENTS | (unaudited) On July 23 and August 3, 2009, the Nominating and Governance Committee (referred to as the "Committee" and consisting solely of those trustees who are not "interested persons" as defined by the Investment Company Act of 1940) of the Board of Trustees (the "Board") of the Claymore Exchange-Traded Fund Trust 2 (the "Trust" with the separate series thereof referred to individually as a "Fund" and collectively as the "Funds") met independently of the Funds' management and of the interested trustee of the Board to consider the renewal of the investment advisory agreement ("Investment Advisory Agreement") between the Trust and Claymore Advisors, LLC ("Adviser") on behalf of the following Funds: CLAYMORE EXCHANGE-TRADED FUND TRUST 2 - ------------------------------------- CLAYMORE/ZACKS COUNTRY ROTATION ETF CLAYMORE/SWM CANADIAN ENERGY INCOME INDEX ETF CLAYMORE/BEACON GLOBAL EXCHANGES, BROKERS & ASSET MANAGERS INDEX ETF CLAYMORE/ZACKS INTERNATIONAL MULTI-ASSET INCOME INDEX ETF CLAYMORE/ROBB REPORT GLOBAL LUXURY INDEX ETF CLAYMORE/BEACON GLOBAL TIMBER INDEX ETF CLAYMORE/ALPHASHARES CHINA REAL ESTATE ETF CLAYMORE/ALPHASHARES CHINA SMALL CAP INDEX ETF CLAYMORE/BNY MELLON FRONTIER MARKETS ETF As part of its review process, the Committee was represented by independent legal counsel. The Committee reviewed materials received from the Adviser and independent legal counsel. The members of the Committee also had previously received, throughout the year, Board meeting information regarding performance and operating results of the Funds. In preparation for its review, the Committee communicated with independent legal counsel regarding the nature of information to be provided, and independent legal counsel, on behalf of the Committee, sent a formal request for information and a supplemental request for information to the Adviser. The Adviser provided extensive information in response to the requests. Among other information, the Adviser provided general information to assist the Committee in assessing the nature and quality of services provided, information comparing the investment performance, advisory fees and total expenses of the Funds to other exchange-traded funds ("ETFs"), information about the Adviser's financial position and the profitability from the Investment Advisory Agreement to the Adviser and the compliance program of the Adviser. The Committee considered that on July 17, 2009, Claymore Group Inc., the parent company of the Adviser ("Claymore Group"), entered into an agreement and plan of merger with subsidiaries of Guggenheim Partners, LLC ("Guggenheim"), pursuant to which Claymore Group and its associated entities, including the Adviser, will become indirect subsidiaries of Guggenheim (the "Transaction") upon the closing of the Transaction. The Committee considered that it had been advised that the closing of the Transaction would cause the automatic termination of the Investment Advisory Agreement pursuant to its terms and, accordingly, that it would be necessary for the Committee to consider the approval of new investment advisory agreements with the Adviser, respectively ("New Advisory Agreements"), in order for the Adviser to continue to provide services to the Funds. The Committee also considered that if the Transaction did not take place that Claymore would have a need for additional working capital. The Committee noted that the Adviser and Guggenheim were in the process of providing information regarding the Transaction to the Committee and that the Committee would hold a meeting in the near future to review such information and to consider the approval of the New Advisory Agreements. Based upon their review, the Committee and the Board concluded that it was in the best interests of the Funds to renew the Investment Advisory Agreement and, accordingly, recommend to the Board the renewal of the Investment Advisory Agreement for a period of ninety days pending a meeting in the near future to consider the approval of the New Advisory Agreements. In reaching this conclusion for the Funds, no single factor was determinative in the Board's analysis, but rather the Board considered a variety of factors. INVESTMENT ADVISORY AGREEMENT In evaluating the nature, extent and quality of the Adviser's services, the Board reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's organization and the background and experience of the persons responsible for the day-to-day management of the Funds. The Board also considered the secondary market support provided by the Adviser to the Funds, including the Adviser's efforts to educate investment professionals about the Funds and other funds sponsored by the Adviser. The Board reviewed financial information regarding the Adviser and its parent company and considered the parent company's guaranty of the Adviser's financial obligations under the Investment Advisory Agreement. The Board reviewed information on the performance of the Funds and the performance of their benchmark indices. The Board also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance. The Board concluded that each of the Funds is correlated to its underlying index and that the tracking error for each Fund was within a reasonable range in that Fund's particular circumstances. Based on its review, the Board found that the nature and extent of services provided to the Funds under the Investment Advisory Agreement was appropriate and that the quality was satisfactory. The Board reviewed and discussed the information provided by the Adviser on each Fund's advisory fee and expense ratio, as compared to comparable ETFs provided by the Adviser. The Board reviewed the annual advisory fees for the Funds and noted that the Adviser had contractually agreed to waive the fee and/or reimburse expenses to absorb certain annual operating expenses of all but one of the Funds (excluding interest expenses, a portion of each Fund's licensing fees, a portion of the offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of a Fund's business) over a certain amount. For the Claymore/BNY Mellon EW Euro-Pacific LDRs ETF, the Board noted that the advisory fee was a unitary fee pursuant to which the Adviser assumes all expenses of the Fund (including the cost of transfer agency, custody, fund administration, legal, audit and other services) other than the fee payments under the respective Investment Advisory Agreement, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses. The Board noted that the advisory fees were generally within the range of the ETF peer funds. The Board concluded that the advisory fee for each Fund was reasonable under the circumstances and in light of the quality of services provided and the expense waiver and reimbursement agreements in place. In conjunction with its review of fees, the Board also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement, as well as the fees waived and expenses reimbursed by the Adviser for the Funds and the estimated allocated direct and indirect costs the Adviser incurred in providing the services to the Funds, which resulted in no profit to the Adviser. Semiannual Report | November 30, 2009 | 75 Claymore Exchange-Traded Fund Trust 2 The Board considered the extent to which economies of scale could be realized with respect to the management of the Funds as the Funds grow and whether fee levels reflected a reasonable sharing of such economies of scale for the benefit of Fund investors. The Board reviewed each Fund's asset size, expense ratio, expense waiver and reimbursement agreement with the Adviser and whether the investment process produced economies of scale. The Board considered the Adviser's statement that, while it has experienced economies of scale as an organization through the introduction of new products, it is concurrently incurring new costs from increased staff and upgraded systems. Accordingly, the Board concluded that fee levels were appropriate. The Board considered other benefits available to the Adviser because of its relationship with the Funds and noted that the administrative service fees received by the Adviser from serving as administrator provide it with additional revenue, but the Board concluded that the advisory fees were reasonable taking into account any benefits from such administration agreements. OVERALL CONCLUSIONS Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the Investment Advisory Agreement continue to be fair and reasonable and that the continuation of the Investment Advisory Agreement is in the best interests of the Funds. 76 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 Board Considerations Regarding Contract Approvals of the INTERIM AND NEW INVESTMENT ADVISORY AGREEMENTS. On September 28, 2009, the Board of Trustees (the "Board") of the Claymore Exchange-Traded Fund Trust 2 (the "Trust"), including those trustees who are not "interested persons" as defined by the Investment Company Act of 1940 (the "Independent Trustees"), on the recommendation of the Nominating & Governance Committee (referred to as the "Committee" and consisting solely of the Independent Trustees) of the Board, approved an interim ("Interim Advisory Agreement") and new ("New Advisory Agreement") advisory agreement (together, the "Investment Advisory Agreements") between the Trust, on behalf of each series of the Trust (each a "Fund" and together, the "Funds"), and Claymore Advisors, LLC ("Adviser"). As part of its review process, the Committee was represented by independent legal counsel. Based upon its review, the Board and the Committee concluded that it was in the best interest of each Fund to approve each of the Investment Advisory Agreements. In reaching this conclusion for the Funds, no single factor was determinative in the Board's analysis, but rather the Board considered a variety of factors. INTERIM ADVISORY AGREEMENT AND NEW ADVISORY AGREEMENT - ----------------------------------------------------- The Board reviewed materials received from the Adviser, Guggenheim Partners, LLC ("Guggenheim") and independent legal counsel. The Board also had previously received, throughout the year, Board meeting information regarding performance and operating results of each Fund. Earlier this year, the Adviser informed the Board that it was in discussions with Guggenheim concerning a strategic transaction, including a potential sale of a controlling interest in the Adviser (the "Transaction"). The Adviser provided periodic reports to representatives of the Board as to the status and nature of such discussions with Guggenheim and the Adviser's operating and financial results. In the spring of 2009, the Adviser informed the Board that Guggenheim had arranged up to $20 million of subordinated loans to Claymore Group Inc. ("Claymore Group") as interim financing for working capital and for inventory purchases in connection with its business of creating, distributing and supervising unit investment trusts and other investment products. Following the execution of a merger agreement between Claymore and Guggenheim (the "Merger Agreement"), a telephonic meeting was held on July 28, 2009, and attended by certain members of the Board, the chief executive officer of Claymore Group and the chief executive officer of Guggenheim. Such executive officers summarized the principal terms of the Merger Agreement, and described the Transaction, the business plans for the Adviser following the consummation of the Transaction and answered such questions as were raised at the meeting. Representatives of the Board requested additional information regarding the Transaction, Guggenheim and the impact of the Transaction on the shareholders of the Funds. During the third quarter of 2009, the Committee received reports on the progress of the Transaction, including the debt financing and additional equity financing arranged by Guggenheim. As part of its review process, the Committee was represented by independent legal counsel. The Committee reviewed materials received from the Adviser, Guggenheim and independent legal counsel. The Adviser and Guggenheim provided, among other information, information regarding the terms of the Transaction and potential benefits to the Adviser from the Transaction. The information provided regarding Guggenheim included (i) financial information, (ii) information regarding senior executives of the firm, (iii) information regarding other Guggenheim affiliated investment managers, (iv) information regarding litigation and regulatory matters and (v) potential conflicts of interest. The Adviser and Guggenheim also provided information regarding Guggenheim's and the Adviser's intentions for the business, operations and personnel of the Adviser following the closing of the Transaction. The Committee met and discussed the Transaction and the Interim Advisory Agreement and the New Advisory Agreement in September 2009. Additional supplemental information regarding the Transaction and Guggenheim was provided by the Adviser and Guggenheim and reviewed by the Committee. Subsequent to these meetings, the Board met in person to consider the Interim Advisory Agreement and the New Advisory Agreement at a meeting held on September 28, 2009. The Board met with representatives of the Adviser and Guggenheim to discuss the Transaction. Representatives from the Adviser and Guggenheim discussed the Transaction with, and answered questions from, the Board. The Committee met in executive session to discuss the Transaction and the information provided at the Board meeting. The Committee concluded that it was in the best interest of the Funds to approve the Interim Advisory Agreement and New Advisory Agreement and, accordingly, recommended to the Board the approval of the Interim Advisory Agreement and New Advisory Agreement. The Board subsequently approved the Interim Advisory Agreement and approved the New Advisory Agreement for a one-year term. The Board also determined to consider the continuation of the Investment Advisory Agreements during the course of the one-year term by conducting a thorough review of the various information that is part of the Board's regular annual consideration of the continuation of the Fund's advisory agreement. In reaching the conclusion to approve the Interim Advisory Agreement and New Advisory Agreement, no single factor was determinative in the Board's analysis, but rather the Board considered a variety of factors. Provided below is an overview of the primary factors the Board considered in connection with the review of the Interim Advisory Agreement and the New Advisory Agreement. In connection with the Board's consideration of the Interim Advisory Agreement and the New Advisory Agreement, the Trustees considered, among other information, the following factors, in addition to other factors noted in the proxy statement: o within the last year, the Board had engaged in a thorough review of the various factors, including fees and performance, that are part of the decision whether to continue an advisory agreement; o Board approval of the Trust's Advisory Agreements was a condition to the closing of the Transaction; o Claymore's statement to the Board that the manner in which each Fund's assets are managed will not change as a result of the Transaction; o the aggregate advisory fee rate payable by each Fund will not change under the Interim Advisory Agreement or New Advisory Agreement; o there are no material differences between the terms of the Interim Advisory Agreement and New Advisory Agreement and the terms of the Trust's prior advisory agreement, except for those provisions in the Interim Advisory Agreement which are necessary to comply with Rule 15a-4 under the 1940 Act; o the capabilities of the Adviser's personnel who will provide advisory, management, share- holder servicing and administrative services to each Fund are not expected to change, and the key personnel who currently provide advisory, management, shareholder servicing and administrative services to each Fund are expected to continue to do so after the Transaction; o the assurance from the Adviser and Guggenheim that following the Transaction there will not be any diminution in the nature, quality and extent of services provided to each Fund; o the Adviser's current financial condition; o the impact of the Transaction on the Adviser's day-to-day operations; o the reputation, capabilities, experience, organizational structure and financial resources of Guggenheim; o the long-term business goals of Guggenheim and the Adviser with regard to the business and operations of the Adviser; o that shareholders of each Fund will not bear any costs in connection with the Transaction, inasmuch as the Adviser will bear the costs, fees and expenses incurred by each Fund in Semiannual Report | November 30, 2009 | 77 Claymore Exchange-Traded Fund Trust 2 connection with the proxy statement and any other costs of a Fund associated with the Transaction; and o that the Adviser and relevant acquisition subsidiaries have agreed to refrain from imposing or seeking to impose, for a period of two years after the Closing, any"unfair burden"(within the meaning of Section 15(f) of 1940 Act) on the Trust. Nature, Extent and Quality of Services Provided by the Adviser. The Board noted that key investment and management personnel servicing each Fund are expected to remain with the Adviser following the Transaction and that the services provided to each Fund by the Adviser are not expected to change. The Board also considered the Adviser's and Guggenheim's representations to the Board that Guggenheim intends for the Adviser to continue to operate following the closing of the Transaction in much the same manner as it operates today, and that the impact of the Transaction on the day-to-day operations of the Adviser would be neutral or positive. The Board also considered Guggenheim's statement that the Adviser's compliance policies and procedures, disaster recovery plans, information security controls and insurance program would not change materially following consummation of the Transaction. Based on this review, the Board concluded that the range and quality of services provided by the Adviser to the Trust were expected to continue under the Interim Advisory Agreement and the New Advisory Agreement at the same or improved levels. Advisory Fees. The Board also considered the fact that the advisory fee rates payable to the Adviser would be the same under the Interim Advisory Agreement and New Advisory Agreement as they are under the Trust's prior advisory agreement, which had within the last year been determined to be reasonable. The Board concluded that these factors supported approval of the Interim Advisory Agreement and New Advisory Agreement. Performance. With respect to the performance of the Funds, the Board considered that the portfolio management personnel currently responsible for the management of the portfolios were expected to continue to manage the portfolios following the closing of the Transaction with at least the same or improved resources. The Board concluded that these factors supported approval of the Interim Advisory Agreement and New Advisory Agreement. Profitability. The Board noted that it was too early to predict how the Transaction may affect the Adviser's future profitability from its relationship with the Trust, but concluded that this matter would be given further consideration on an annual basis going forward. The Board also noted that the Adviser's fee rates under the Interim Advisory Agreement and New Advisory Agreement are the same as those assessed under the Trust's prior advisory agreement. Economies of Scale. The Board considered any potential economies of scale that may result from the Transaction. The Board further noted Guggenheim's statement that such economies of scale could not be predicted in advance of the closing of the Transaction. Other Benefits. The Board noted its prior determination that the advisory fees were reasonable, taking into consideration other benefits to the Adviser (including the receipt by Claymore of an administrative fee). The Board also considered other benefits to the Adviser, Guggenheim and their affiliates expected to be derived from their relationships with the Trust as a result of the Transaction and noted that no additional benefits were reported by the Adviser or Guggenheim as a result of the Transaction. Therefore, the Board concluded that the advisory fees continued to be reasonable, taking into consideration other benefits. OVERALL CONCLUSIONS - ------------------- Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the Investment Advisory Agreements are fair and reasonable and that approval of the Investment Advisory Agreements is in the best interests of the Trust. 78 | Semiannual Report | November 30, 2009 Claymore Exchange-Traded Fund Trust 2 Trust INFORMATION |
BOARD OF TRUSTEES OFFICERS INVESTMENT ADVISER Randall C. Barnes J. Thomas Futrell Claymore Advisors, LLC Ronald A. Nyberg Chief Executive Officer Lisle, IL Ronald E.Toupin, Jr. Steven M. Hill DISTRIBUTOR Chief Accounting Officer, Claymore Securities, Inc. Chief Financial Officer and Treasurer Lisle, IL Kevin M. Robinson ADMINISTRATOR Chief Legal Officer Claymore Advisors, LLC Lisle, IL Bruce Saxon Chief Compliance Officer ACCOUNTING AGENT, CUSTODIAN AND TRANSFER AGENT Melissa J. Nguyen The Bank of NewYork Mellon Secretary NewYork, NY William H. Belden III LEGAL COUNSEL Vice President Dechert LLP NewYork, NY Chuck Craig Vice President INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst &Young LLP Chicago, IL
PRIVACY PRINCIPLES OF THE TRUST FOR SHAREHOLDERS The Funds are committed to maintaining the privacy of their shareholders and to safeguarding the non-public personal information. The following information is provided to help you understand what personal information the Funds collect, how we protect that information and why, in certain cases, we may share information with select other parties. Generally, the Funds do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of their shareholders may become available to the Funds. The Funds do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator). The Funds restrict access to non-public personal information about the shareholders to Claymore Advisors, LLC employees with a legitimate business need for the information. The Funds maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of their shareholders. QUESTIONS CONCERNING YOUR SHARES OF THE TRUST? o If your shares are held in a Brokerage Account, contact your Broker. This report is sent to shareholders of the Funds for their information. It is not a Prospectus, circular or representation intended for use in the purchase or sale of shares of the Funds or of any securities mentioned in this report. A description of the Funds' proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Funds at (888) 949-3837. Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request by calling (888) 949-3837, visiting Claymore's website at www.claymore.com or by accessing the Funds' Form N-PX on the SEC's website at www.sec.gov. The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Q is available on the SEC website at www.sec.gov or by visiting Claymore's website at www.claymore.com. The Funds' Form N-Q may also be viewed and copied at the SEC's Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Semiannual Report | November 30, 2009 | 79 Claymore Exchange-Traded Fund Trust 2 About the FUND MANAGER | CLAYMORE ADVISORS, LLC Claymore Advisors, LLC manages the investment and reinvestment of each Fund's assets and administers the affairs of each Fund to the extent requested by the Board of Trustees. Claymore Advisors, LLC also acts as investment adviser to closed-end and open-end management investment companies. Claymore entities have provided supervision, management or servicing on approximately $14.3 billion in assets as of November 30, 2009. Claymore currently offers exchange-traded funds, closed-end funds, and unit investment trusts. PORTFOLIO MANAGEMENT The portfolio manager who is currently responsible for the day-to-day management of the Funds' portfolio is Chuck Craig, CFA. Mr. Craig has managed each Fund's portfolio since its inception. Mr. Craig is a Managing Director, Portfolio Management and Supervision, of the Investment Adviser and Claymore Securities, Inc. and joined Claymore Securities, Inc. in May of 2003. Before joining Claymore Securities, Inc., Mr. Craig spent four years with First Trust Portfolios L.P. (formerly Nike Securities) as an equity-research analyst and portfolio manager within the Equity Strategy Research group. Mr. Craig received a M.S. in Financial Markets from the Center for Law and Financial Markets at the Illinois Institute of Technology. He also earned a B.S. in Finance from Northern Illinois University. CLAYMORE EXCHANGE-TRADED FUND TRUST 2 OVERVIEW The Claymore Exchange-Traded Fund Trust 2 (the "Trust") is an investment company consisting of 15 separate exchange-traded "index funds" as of November 30, 2009. The investment objective of each of the funds is to replicate as closely as possible, before fees and expenses, the performance of a specified market index. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS FOR THE FUND BEING OFFERED. THE PROSPECTUS CONTAINS INFORMATION ABOUT THE FUND INCLUDING A DISCUSSION OF INVESTMENT OBJECTIVES, RISKS, ONGOING EXPENSES AND SALES CHARGES. IF A PROSPECTUS DID NOT ACCOMPANY THIS REPORT, YOU CAN OBTAIN ONE FROM YOUR FINANCIAL ADVISER, FROM OUR WEBSITE AT HTTP://WWW.CLAYMORE.COM OR BY CALLING (888) 949-3837. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. THE STATEMENT OF ADDITIONAL INFORMATION THAT INCLUDES ADDITIONAL INFORMATION ABOUT THE TRUSTEES IS ALSO AVAILABLE, WITHOUT CHARGE, UPON REQUEST VIA OUR WEBSITE AT HTTP://WWW.CLAY-MORE.COM OR BY CALLING (888) 949-3837. ALL FUNDS ARE SUBJECT TO MARKET RISK AND SHARES WHEN SOLD MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. YOU CAN LOSE MONEY INVESTING IN THE FUNDS. CLAYMORE SECURITIES, INC. 2455 Corporate West Drive Lisle, IL 60532 Member FINRA/SIPC NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE (01/10) ETFT-002-SAR-1109 ITEM 2. CODE OF ETHICS. Not applicable for a semi-annual reporting period. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable for a semi-annual reporting period. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable for a semi-annual reporting period. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable for a semi-annual reporting period. ITEM 6. SCHEDULE OF INVESTMENTS. The Schedule of Investments is included as part of Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not Applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not Applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not Applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Registrant has not made any material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) within 90 days of this filing and have concluded that based on such evaluation, the registrant's disclosure controls and procedures were effective as of that date in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's last fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications of principal executive officer and principal financial officer pursuant to Rule 30a-2(a) of the Investment Company Act of 1940. (a)(3) Not Applicable. (b) Certifications of principal executive officer and principal financial officer pursuant to Rule 30a-2(b) of the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Claymore Exchange-Traded Fund Trust 2 ------------------------------------- By: /s/ J. Thomas Futrell --------------------- Name: J. Thomas Futrell Title: Chief Executive Officer Date: February 8, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ J. Thomas Futrell --------------------- Name: J. Thomas Futrell Title: Chief Executive Officer Date: February 8, 2010 By: /s/ Steven M. Hill ------------------ Name: Steven M. Hill Title: Treasurer and Chief Financial Officer Date: February 8, 2010 EX-99.CERT 2 ex99-cert.txt CERTIFICATIONS EXHIBIT (a)(2) CERTIFICATION OF CHIEF EXECUTIVE OFFICER CERTIFICATIONS -------------- I, J. Thomas Futrell, certify that: 1. I have reviewed this report on Form N-CSR of Claymore Exchange-Traded Fund Trust 2; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: February 8, 2010 ------------------ /s/ J. Thomas Futrell ------------------------------ J. Thomas Futrell Chief Executive Officer CERTIFICATION OF CHIEF FINANCIAL OFFICER CERTIFICATIONS -------------- I, Steven M. Hill, certify that: 1. I have reviewed this report on Form N-CSR of Claymore Exchange-Traded Fund Trust 2; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: February 8, 2010 ------------------ /s/ Steven M. Hill ------------------------------------ Steven M. Hill Treasurer and Chief Financial Officer EX-99.906 CERT 3 ex99-cert906.txt CERTIFICATION EXHIBIT (b) CERTIFICATION OF CEO AND CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Report on Form N-CSR of Claymore Exchange-Traded Fund Trust 2 (the "Trust") for the period ended November 30, 2009 (the "Report"), J. Thomas Futrell, as Chief Executive Officer of the Company, and Steven M. Hill, as Treasurer and Chief Financial Officer of the Trust, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge: (1) the Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: February 8, 2010 -------------------------------------- /s/ J. Thomas Futrell --------------------- Name: J. Thomas Futrell Title: Chief Executive Officer /s/ Steven M. Hill --------------------- Name: Steven M. Hill Title: Treasurer and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----