The main benefit of UEM is that you are getting broad, balanced exposure at a lost cost in a single investment. The fund and index managers are doing all of the work behind the scenes to screen and select the appropriate securities within a rigorous construction framework.
UEM is U.S. focused and does not include international securities or alternative asset classes.
UEM tracks an index of 856 securities that is designed to be a long term measure of the three segments of the U.S. investment grade capital markets. The mix across asset classes is approximately 50% equities, 30% long-term fixed income and 30% cash and equivalents.
The equity component of the index is market-cap weighted and reconstituted quarterly. The fixed income and money market index constitutents are reconstituted monthly. The expense ratio is 0.37%.
For more information, see Claymore’s website.