CGW Invesco S&P Global Water Index ETF

Management Discussion of | Fund Performance |

EXB | Claymore/Clear Global Exchanges, Brokers & Asset Managers Index ETF

The Claymore/Clear Global Exchanges, Brokers & Asset Managers Index ETF (the “Fund”) seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an index called the Clear Global Exchanges, Brokers & Asset Managers Index (the “Clear EB&A Index” or “Index). The Fund will normally invest at least 90% of its total assets in equity securities, American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that comprise the Index. Claymore Advisors, LLC (“the Investment Adviser”) seeks a correlation over time of .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, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before expenses, the performance of the Clear EB&A Index. The Index is comprised of approximately 100 equity securities traded on global exchanges, as well as ADRs and 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 Clear Indexes LLC (“Clear” or the “Index Provider”). The Index may include large-capitalization, mid-capitalization and small-capitalization companies as defined by Clear. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index.

Fund Performance

This report discusses an abbreviated semi-annual fiscal period from the Fund’s inception date of June 27, 2007, through November 30, 2007.

On a market price basis, the Fund generated a total return of 9.41%, representing a change in market price to $26.87 on November 30, 2007, from $24.56 at inception. On a net asset value (“NAV”) basis, the Fund generated a total return of 9.24%, representing a change in NAV to $26.83 on November 30, 2007, from $24.56 at inception. 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. However, the Investment Adviser believes that large discounts or premiums to the NAV of the shares should not be sustained.

For index and broad market comparison purposes, the Index returned 9.81% and the MSCI World Index returned 2.36% for the same period. The MSCI World Index is a free float-adjusted market capitalization index that measures global developed market equity performance of the developed market country indices of Europe, Australasia, the Far East, the U.S. and Canada. It is not possible to invest directly in an index.

Economic and Market Overview

The period from the Fund’s inception date of June 27, 2007, through November 30, 2007, was a difficult environment for investors in both equity and fixed income, as concerns have mounted about the widening impact of the sub-prime mortgage crisis on the markets and the economy as a whole. Equity markets were highly volatile, with no pronounced trend that defines the entire period. In the fixed income market, spreads between credits of the highest quality and riskier instruments have widened dramatically, as investors have become increasingly intolerant of risk.

Most international equity markets were stronger than the U.S. market, with particular strength in Asian markets other than Japan. Most world economies continued to expand during 2007, despite a variety of concerns. In the U.S., consumer spending has held up reasonably well, and labor market trends remain fairly positive. Business investment and corporate earnings continued to grow. Expansion in net exports, supported by economic growth abroad and the weak dollar, contributed to growth in the U.S., cushioning the impact of the housing correction. Beginning in September, the Fed reduced interest rates three times, striving to strike a balance between providing needed support for financial markets and keeping inflation at a moderate level.

Performance Attribution

Since essentially all of the Fund’s investments are in the financial sector, performance is driven mainly by the returns of sub-sectors of the financial sector and by individual positions. Major contributors to return were investment services firms, including Hong Kong Exchanges & Clearing Ltd. and Deutsche Boerse AG (7.7% and 7.7% of total investments, respectively). Detractors from performance included asset managers such as Legg Mason Inc. and Franklin Resources Inc. (2.3% and 4.5% of total investments, respectively).

Claymore Exchange-Traded Fund Trust 2 | Management Discussion of Fund Performance continued

CUT | Claymore/Clear Global Timber Index ETF

The Claymore/Clear Global Timber Index ETF (the “Fund”) seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the Clear Global Timber Index (the “Index”). The Fund will normally invest at least 90% of its total assets in common stock, American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that comprise the Index. Claymore Advisors, LLC (the “Investment Adviser”) seeks a correlation over time of .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, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before expenses, the performance of the Clear Global Timber Index. All stocks in the Index are selected from the universe of global timber companies. Clear Indexes LLC (“Clear” 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 Clear. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index.

Fund Performance

This report discusses an abbreviated semi-annual fiscal period from the Fund’s inception date of November 9, 2007, through November 30, 2007.

On a market price basis, the Fund generated a total return of -0.44%, representing a change in market price to $24.80 on November 30, 2007, from $24.91 at inception. On a net asset value (“NAV”) basis, the Fund generated a total return of -1.52%, representing a change in NAV to $24.53 on November 30, 2007, from $24.91 at inception. 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. However, the Investment Adviser believes that large discounts or premiums to the NAV of the shares should not be sustained.

For index and broad market comparison purposes, the Index returned -1.42% and the MSCI World Index returned -0.45% for the same period. The MSCI World Index is a free float-adjusted market capitalization index that measures global developed market equity performance of the developed market country indices of Europe, Australasia, the Far East, the U.S. and Canada. It is not possible to invest directly in an index.

Economic and Market Overview

During the brief period from the fund’s inception date of November 9, 2007, through November 30, 2007, returns of most major U.S. equity indices were marginally positive. Large-cap stocks generally performed better than small-cap, as investors have demonstrated a preference for securities perceived as less risky. Most international equity markets were stronger than the U.S. market, with particular strength in Asian markets other than Japan.

Economic reports during the period were mixed. While most world economies continued to expand, the U.S. economy struggled to cope with a slump in the housing market and a broadly-based tightening of credit conditions. Expansion in net exports, supported by economic growth abroad and the weak dollar, contributed to growth in the U.S., cushioning the impact of the housing correction. The Fed has begun to reduce interest rates, striving to strike a balance between providing needed support for financial markets and keeping inflation at a moderate level.

Performance Attribution

Since the Fund’s investments are concentrated in the timber industry, performance is driven mainly by individual positions in this industry. The strongest gains in the Fund’s first few weeks of operation were in two Brazilian companies, Votorantim Celulose e Papel SA, which produces a variety of pulp and paper products, and Aracruz Celulose SA, a producer of bleached hardwood kraft market pulp (5.4% and 4.9% of total investments, respectively). Detractors from performance include Sino-Forest Corporation, a Chinese commercial forestry plantation operator, and China Grand Forestry Resources Group Ltd., a Hong Kong company in the ecological forestry business (4.6% and 2.2% of total investments, respectively).

Claymore Exchange-Traded Fund Trust 2 | Management Discussion of Fund Performance continued

JNR | Claymore/Clear Global Vaccine Index ETF

The Claymore/Clear Global Vaccine Index ETF (the “Fund”) seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the Clear Global Vaccine Index (the “Index”). The Fund will normally invest at least 90% of its total assets in equity securities, American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) that comprise the Index. Claymore Advisors, LLC (“the Investment Adviser”) seeks a correlation over time of .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, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before expenses, the performance of the Clear Global Vaccine Index. The companies in the Index are intended to be representative of the global universe of companies that research, develop, manufacture, license and/or market vaccines, as determined through independent research provided by Clear Indexes LLC (“Clear” or the “Index Provider”). The Index is generally comprised of approximately 40 securities traded on developed market exchanges as well as ADRs and GDRs. Clear generally defines developed market as the capital markets of those countries with high levels of per capita income and strict market regulation resulting in greater transparency. Specifically, all or any subset of the following countries/regions are currently considered to be developed markets – Austria, Australia, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom and the U.S. The Index may include large capitalization, mid-capitalization or small-capitalization companies as defined by Clear. The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index.

Fund Performance

This report discusses an abbreviated semi-annual fiscal period from the Fund’s inception date of June 27, 2007, through November 30, 2007.

On a market price basis, the Fund generated a total return of 0.04%, representing a change in market price to $24.97 as of November 30, 2007, from $24.96 at inception. On a net asset value (“NAV”) basis, the Fund generated a total return of -0.60%, representing a change in NAV to $24.81 on November 30, 2007, from $24.96 at inception. 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. However, the Investment Adviser believes that large discounts or premiums to the NAV of the shares should not be sustained.

For index and broad market comparison purposes, the Index returned -0.01% and the MSCI World Index returned 2.36% for the same period. The MSCI World Index is a free float-adjusted market capitalization index that measures global developed market equity performance of the developed market country indices of Europe, Australasia, the Far East, the U.S. and Canada. It is not possible to invest directly in an index.

Economic and Market Overview

The period from the Fund’s inception date of June 27, 2007, through November 30, 2007, was a difficult environment for investors in both equity and fixed income, as concerns have mounted about the widening impact of the sub-prime mortgage crisis on the markets and the economy as a whole. Equity markets were highly volatile, with no pronounced trend that defines the entire period. In the fixed income market, spreads between credits of the highest quality and riskier instruments have widened dramatically, as investors have become increasingly intolerant of risk. Most international equity markets were stronger than the U.S. market, with particular strength in Asian markets other than Japan.

Most world economies continued to expand during 2007, despite a variety of concerns. In the U.S., consumer spending has held up reasonably well, and labor market trends remain fairly positive. Business investment and corporate earnings continued to grow. Expansion in net exports, supported by economic growth abroad and the weak dollar, contributed to growth in the U.S., cushioning the impact of the housing correction. Beginning in September, the Fed reduced interest rates three times, striving to strike a balance between providing needed support for financial markets and keeping inflation at a moderate level.

Performance Attribution

Since the majority of the Fund’s investments are in the health care sector, performance is driven largely by returns of positions within this sector. Major contributors to return were large pharmaceutical firms including U.S. industry leaders Merck & Co., Inc. and Johnson & Johnson, and Sanofi-Aventis SA, a French company (5.4%, 5.0% and 5.2% of total investments, respectively). Most of the positions that detracted from performance were in the biotechnology area. These include Pharmexa A/S, a Danish company engaged in the field of immunotherapy and vaccines for the treatment of cancer and serious chronic and infectious diseases; Cytos Biotechnology AG, a Swiss firm that develops immunodrugs for treatment and prevention of chronic diseases; Avant Immunotherapeutics, Inc., a U.S. company that uses applications of immunology to develop products for the prevention and treatment of diseases; and Oncothyreon, Inc., formerly Biomira, Inc., an international biotechnology company headquartered in Canada (0.3%, 1.4%, 0.1% and 0.2% of total investments, respectively).

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ROB | Claymore/Robb Report Global Luxury Index ETF

The Claymore/Robb Report Global Luxury Index ETF (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 Fund will normally invest at least 90% of its total assets in common stock and American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that comprise the Index. Claymore Advisors, LLC (the “Investment 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, using a low cost “passive” or “indexing” investment approach, seeks to replicate, before expenses, the performance of the Robb Report Global Luxury 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 ADRs and 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 current list of global developed markets consists of Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

Fund Performance

This report discusses an abbreviated semi-annual fiscal period from the Fund’s inception date of July 30, 2007, through November 30, 2007.

On a market price basis, the Fund generated a total return of 4.12%, representing a change in market price to $24.78 on November 30, 2007, from $23.80 at inception. On a net asset value (“NAV”) basis, the Fund generated a total return of 3.87%, representing a change in NAV to $24.72 on November 30, 2007, from $23.80 at inception. 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. However, the Investment Adviser believes that large discounts or premiums to the NAV of the shares should not be sustained.

For index and broad market comparison purposes, the Index returned 4.49% and the MSCI World Index returned 4.38% for the same period. The MSCI World Index is a free float-adjusted market capitalization index that measures global developed market equity performance of the developed market country indices of Europe, Australasia, the Far East, the U.S. and Canada. It is not possible to invest directly in an index.

Economic and Market Overview

The period from the Fund’s inception date of July 30, 2007, through November 30, 2007, was a challenging environment for investors. Concerns have mounted about the widening impact of the sub-prime mortgage crisis on the markets and the economy as a whole, causing investors to become increasingly risk-averse. In the U.S. equity market, major indices that measure performance of large-cap and growth stocks trended up, while most small-cap and value indices were down. Most international equity markets were stronger than the U.S. market, with particular strength in Asian markets other than Japan.

Most world economies continued to expand during 2007, despite a variety of concerns. In the U.S., consumer spending held up reasonably well, and labor market trends remained fairly positive. Business investment and corporate earnings continued to grow. Expansion in net exports, supported by economic growth abroad and the weak dollar, contributed to growth in the U.S., cushioning the impact of the housing correction. Beginning in September, the Fed reduced interest rates three times, striving to strike a balance between providing needed support for financial markets and keeping inflation at a moderate level.

Performance Attribution

Since more than half of the Fund’s assets are invested in the consumer goods sector, positions in this sector generally drive performance. Other sectors with significant representation are consumer services and financials. Positions that contributed strongly to returns included Wynn Resorts, Ltd. (3.0% of total investments), which operates destination casino resorts; Northern Trust Corp. and Julius Baer Holding AG (3.9% and 4.1% of total investments, respectively), both in the financial service sector. The greatest detractors from performance were leather goods marketer Coach, Inc. and retailer Nordstrom, Inc. (3.0% and 1.8% of total investments, respectively).

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ENY | Claymore/SWM Canadian Energy Income Index ETF

The Claymore/SWM Canadian Energy Income Index ETF (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 “Energy Income Index” or “Index”). The Fund will normally invest at least 90% of its total assets in securities that comprise the Index. The Fund, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before expenses, the performance of the Index. Claymore Advisors, LLC (“the Investment Adviser”) seeks a correlation over time of .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 will generally invest in all of the stocks comprising the Index in proportion to their weightings in 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”), AMEX, NASDAQ or NYSE. The universe of companies includes over 35 TSX listed Canadian royalty trusts and 25 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 Energy Income Index selection methodology 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 Energy Income 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 moving average price, crude oil is determined to be in a bear phase.

Crude oil price trends are evaluated at the end of each calendar quarter and tactical asset allocation adjustments are implemented on the first trading day of the new quarter.

Fund Performance

This report discusses an abbreviated semi-annual fiscal period from the Fund’s inception date of July 3, 2007, through November 30, 2007.

On a market price basis, the Fund generated a total return of -1.08%, representing a change in market price to $24.78 on November 30, 2007, from $25.05 at inception. On a net asset value (“NAV”) basis, the Fund generated a total return of -1.04%, representing a change in NAV to $24.79 on November 30, 2007, from $25.05 at inception. 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. However, the Investment Adviser believes that large discounts or premiums to the NAV of the shares should not be sustained.

For index and broad market comparison purposes, the Index returned 0.57% and the S&P/TSX Composite Index (“S&P /TSX”) returned -0.62% for the same period. The S&P/TSX is an unmanaged index that tracks the performance of the largest companies on the Toronto Stock Exchange as measured by market capitalization. It is not possible to invest directly in an index.

Economic and Market Overview

The period from the Fund’s inception date of July 3, 2007, through November 30, 2007, was a difficult environment for investors in both equity and fixed income, as concerns have mounted about the widening impact of the sub-prime mortgage crisis on the markets and the economy as a whole. Equity markets were highly volatile, with no pronounced trend that defines the entire period. In the fixed income market, spreads between credits of the highest quality and riskier instruments have widened dramatically, as investors have become increasingly intolerant of risk.

The U.S. economy continued to expand at a moderate pace during 2007, despite a variety of concerns. Consumer spending has held up reasonably well, and labor market trends remain fairly positive. Business investment and corporate earnings continued to grow. Expansion in net exports, supported by economic growth abroad and the weak dollar, contributed to growth in the U.S., cushioning the impact of the housing correction. Beginning in September, the Fed reduced interest rates three times, as it strives to strike a balance between providing needed support for financial markets and keeping inflation at a moderate level.

Performance Attribution

Since essentially all of the Fund’s investments are in the energy sector, performance is driven mainly by individual positions in this sector. Major contributors to performance to return were Petrobank Energy & Resources Ltd. (6.7% of total investments), which is engaged in the exploration for and development and production of oil and natural gas in the Western Canadian Sedimentary Basin and the country of Colombia, and Canadian Oil Sands Trust, an investment trust that is involved in the mining and upgrading of bitumen from oil sands in Northern Alberta (7.9% of total investments). Detractors from performance included OPTI Canada Inc., an oil sands development company based in Alberta, and Synenco Energy Inc., a development state company engaged in the business of developing oil sands-related assets in Alberta (5.6% and 4.1% of total investments, respectively).

Claymore Exchange-Traded Fund Trust 2 | Management Discussion of Fund Performance continued

CRO | Claymore/Zacks Country Rotation ETF

The Claymore/Zacks Country Rotation ETF (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 “Zacks Country Rotation Index” or “Index”). The Fund will normally invest at least 90% of its total assets in common stocks and American depositary receipts (ADRs) that comprise the Index. Claymore Advisors, LLC (the “Investment Adviser”) seeks a correlation over time of .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, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before expenses, the performance of the Zacks Country Rotation Index. The Index is comprised of 200 stocks selected, based on investment and other criteria, from a universe of international companies based in countries included in the MSCI EAFE Index and including Canada, with the exclusion of companies based in Greece. The companies in the universe are selected using a proprietary methodology developed by Zacks Investment Research, Inc. (“Zacks” or the “Index Provider”).

Fund Performance

This report discusses an abbreviated semi-annual fiscal period from the Fund’s inception date of July 11, 2007, through November 30, 2007.

On a market price basis, the Fund generated a total return of 3.71%, representing a change in market price to $26.01 on November 30, 2007, from $25.08 at inception. On a net asset value (“NAV”) basis, the Fund generated a total return of 3.95%, representing a change in NAV to $26.07 on November 30, 2007, from $25.08 at inception. 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. However, the Investment Adviser believes that large discounts or premiums to the NAV of the Shares should not be sustained.

For index and broad market comparison purposes, the Index returned 4.47% and the Morgan Stanley Capital International Europe Australasia and Far East Index (“MSCI EAFE ^® ”) returned 0.81% for the same period. MSCI EAFE is an unmanaged, capitalization weighted measure of stock markets in Europe, Australasia and the Far East. It is not possible to invest directly in an index.

Economic and Market Overview

The period from the Fund’s inception date of July 11, 2007, through November 30, 2007, was a difficult environment for investors in both equity and fixed income, as concerns have mounted about the widening impact of the sub-prime mortgage crisis on the markets and the economy as a whole. U.S. equity markets have been highly volatile, with no pronounced trend that defines the entire period. Most international equity markets were stronger than the U.S. market, with particular strength in Asian markets other than Japan.

Most world economies continued to expand during 2007, despite a variety of concerns. In the U.S., consumer spending has held up reasonably well, and labor market trends remain fairly positive. Business investment and corporate earnings continued to grow. Expansion in net exports, supported by economic growth abroad and the weak dollar, contributed to growth in the U.S., cushioning the impact of the housing correction. Beginning in September, the Fed reduced interest rates three times, striving to strike a balance between providing needed support for financial markets and keeping inflation at a moderate level.

Performance Attribution

The Fund’s strongest gains were in the telecommunications, utilities and basic materials sectors. Sectors that detracted from performance were industrials and technology. In telecommunications, top contributors to performance were Telefonica S.A. (1.2% of total investments), based in Spain with operations throughout Europe and Latin America, and Singapore Telecommunications Ltd. (0.9% of total investments). In the utilities sector, Hong Kong & China Gas Co Ltd. (0.9% of total investments) was particularly strong. The best performing holdings in the materials sector were Rio Tinto Ltd. (1.0% of total investments) and Rio Tinto PLC (0.9% of total investments), two related entities that operate as an international mining company. The Fund’s two positions in the technology sector, Foxconn International Holdings Ltd. (0.6% of total investments), a handset manufacturer based in Hong Kong, and L.M. Ericsson Telephone Co. (0.4% of total investments), an international service provider based in Sweden, were both down sharply. In the industrial sector, detractors from performance included Swedish auto manufacturer Volvo AB (0.9% of total investments) and Wolseley PLC (0.2% of total investments), a building materials company based in the U.K.

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HGI | Claymore/Zacks International Yield Hog Index ETF

The Claymore/Zacks International Yield Hog Index ETF (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 Yield Hog Index (the “International Yield Hog Index” or “Index”). The Fund will normally invest at least 90% of its total assets in stocks that comprise the Index. Claymore Advisors, LLC (the “Investment Adviser”) seeks a correlation over time of .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, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before expenses, the performance of the Zacks International Yield Hog 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, 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” or the “Index Provider”). The Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index.

Fund Performance

This report discusses an abbreviated semi-annual fiscal period from the Fund’s inception date of July 11, 2007, through November 30, 2007.

On a market price basis, the Fund generated a total return of -5.12%, representing a change in market price to $23.70 on November 30, 2007, from $24.98 at inception. On a net asset value (“NAV”) basis, the Fund generated a total return of -4.40%, representing a change in NAV to $23.88 on November 30, 2007, from $24.98 at inception. 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. However, the Investment Adviser believes that large discounts or premiums to the NAV of the shares should not be sustained.

For index and broad market comparison purposes, the Index returned -3.95% and the Morgan Stanley Capital International Europe Australasia and Far East Index (“MSCI EAFE ^® ”) returned 0.81% for the same period. MSCI EAFE is an unmanaged, capitalization weighted measure of stock markets in Europe, Australasia and the Far East. It is not possible to invest directly in an index.

Economic and Market Overview

The period from the Fund’s inception date of July 11, 2007, through November 30, 2007, was a difficult environment for investors in both equity and fixed income, as concerns have mounted about the widening impact of the sub-prime mortgage crisis on the markets and the economy as a whole. U.S. equity markets have been highly volatile, with no pronounced trend that defines the entire period. Most international equity markets were stronger than the U.S. market, with particular strength in Asian markets other than Japan.

Most world economies continued to expand during 2007, despite a variety of concerns. In the U.S., consumer spending has held up reasonably well, and labor market trends remain fairly positive. Business investment and corporate earnings continued to grow. Expansion in net exports, supported by economic growth abroad and the weak dollar, contributed to growth in the U.S., cushioning the impact of the housing correction. Beginning in September, the Fed reduced interest rates three times, striving to strike a balance between providing needed support for financial markets and keeping inflation at a moderate level.

Performance Attribution

The Fund’s strongest gains for the period from July 11, 2007, through November 30, 2007, were in the telecommunications sector, followed by the basic materials sector. Sectors that detracted from performance were consumer services, consumer goods and industrials. In the telecommunications sector, the strongest contributor was France Telecom SA (1.4% of total investments). In the basic materials sector, Aluminum Corp. of China Ltd. (not held in the portfolio at period end) and Anglo American PLC (2.7% of total investments, combined ADR and ordinary shares), a mining and natural resource company based in the U.K. contributed to performance. In the consumer services sector, performance was hurt by weakness in three retailers, Kingfisher PLC, DSG International PLC and Signet Group PLC (0.8%, 0.9% and 0.5% of total investments, respectively), and by Ladbrokes PLC (0.6% of total investments), a gaming company; all four of these companies are headquartered in the U.K. In the consumer goods sector, a detractor from performance was EganaGoldpfeil (Holdings) Ltd. (not held in the portfolio at period end), a jewelry retailer based in Hong Kong that is undergoing restructuring. Detractors in the industrials sector included Tomkins PLC (1.0% of total investments), a British engineering and manufacturing company, and James Hardie Industries N.V. (0.5% of total investments), an international building materials group based in the Netherlands.

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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. There can be no assurance that the Funds will achieve their investment objectives. An investment in the Funds is subject to certain risks and other considerations that include, but are not limited to:

Investment Risk. This includes the risk of the possible loss of the entire principal amount that you invest.

Equity Risk. This includes the risk that 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. The Fund’s investments in non-U.S. issuers may involve unique risks compared to investing in securities of U.S. issuers, including, among others, less market liquidity, generally greater market volatility than U.S. securities and less complete financial information than for U.S. issuers. In addition, adverse political, economic or social developments could undermine the value of the Fund’s investments or prevent the Fund from realizing the full value of its investments. Financial reporting standards for companies based in foreign markets differ from those in the United States. Finally, the value of the currency of the country in which the Fund has invested could decline relative to the value of the U.S. dollar, which may affect the value of the investment to U.S. investors. In addition, the underlying issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute shareholder communications to the holders of such receipts, or to pass through to them any voting rights with respect to the deposited securities.

Replication Management Risk. Unlike many investment companies, the Funds are not “actively” managed. Therefore, the Funds won’t necessarily sell a stock because the stock’s issuer was in financial trouble unless that stock is removed from the Index.

Non-Correlation Risk. The Funds’ returns may not match the returns of the indices. For example, the Funds incur operating expenses not applicable to the indices, and incur costs in buying and selling securities, especially when rebalancing the Funds’ holdings to reflect changes in the composition of the indices.

The Fund may not be fully invested at times, either as a result of cash flows into the Fund or reserves of cash held by the Fund to meet redemptions and expenses. If the Fund utilizes a sampling approach or futures or other derivative positions, its return may not correlate as well with the return on the Index, as would be the case if it purchased all of the stocks in the Index with the same weightings as the Index.

Issuer-Specific Changes Risk. 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 Funds are considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund.

Micro-, Small- and Medium-Sized Company Risk. Investing in securities of micro-, small and medium-capitalization companies involves greater risk than investing in more established companies. These companies’ stocks may be more volatile and less liquid than those of more established companies.

The Claymore/Clear Global Vaccine Index ETF is also subject to Vaccine Industry Risk . Companies that research, develop, manufacture, license, and/or market vaccines may be susceptible to government regulation and reimbursement rates. Such companies may also be heavily dependent on patent protection, with their profitability affected by the expiration of patents. Companies that research, develop, manufacture, license, and/or market vaccines may also be subject to expenses and losses from extensive litigation based on product liability and similar claims, as well as competitive forces that may make it difficult to raise prices and, in fact, may result in price discounting. The process for obtaining new product approval by the Food and Drug Administration is long and costly. Such companies also may be characterized by thin capitalization and limited product lines, markets, financial resources or personnel.

The Claymore/Clear Global Exchanges, Brokers & Asset Managers Index ETF is also subject to Exchanges, Brokers & Asset Managers Industries Risk. Because the Index is concentrated in a particular industry, group of industries or sector, the Fund may be adversely affected by the performance of those securities and may be subject to price volatility. In addition, the Fund may be more susceptible to any single economic, market, political or regulatory occurrence affecting that industry or group of industries. Companies in the exchanges, brokers or asset managers industries are subject to extensive government regulation that affects the scope of their activities, the prices they can charge and the amount of capital they must maintain. The exchanges, brokers or asset managers industries can be significantly affected by stock and bond market activity, brokerage commission structures, and a competitive environment combined with the high operating leverage inherent in companies in these industries.

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The Claymore/SWM Canadian Energy Income Index ETF is also subject to the following risks:

Oils/Energy Sector Risk. The profitability of companies in the oils/energy sector is related to worldwide energy prices, exploration, and production spending. Such companies also are subject to risks of changes in exchange rates, government regulation, world events, depletion of resources and economic conditions, as well as market, economic and political risks of the countries where energy companies are located or do business. Oil and gas exploration and production can be significantly affected by natural disasters. Oil exploration and production companies may be adversely affected by changes in exchange rates, interest rates, government regulation, world events, and economic conditions. Oil exploration and production companies may be at risk for environmental damage claims.

Canadian Risk. As the Fund invests in Canadian royalty trusts and stocks listed on the TSX, the Fund is subject to the following risks:

Commodity Exposure Risk. The Canadian economy is very dependent on the demand for, and supply and price of, natural resources. The Canadian market is relatively concentrated in issuers involved in the production and distribution of natural resources. There is a risk that any changes in these sectors could have an adverse impact on the Canadian economy.

Reliance on Exports Risk. The Canadian economy is dependent on the economies of the United States as a key trading partner. Reduction in spending on Canadian products and services or changes in the U.S. economy may cause an impact in the Canadian economy: U.S. Economic Risk. The Canadian economy may be significantly affected by the U.S. economy, given that the United States is Canada’s largest trading partner and foreign investor. Since the implementation of the North American Free Trade Agreement (NAFTA) in 1994, total two-way merchandise trade between the United States and Canada has more than doubled. To further this relationship, all three NAFTA countries entered into The Security and Prosperity Partnership of North America in March 2005, which addressed economic and security related issues. The new agreement may further affect Canada’s dependency on the U.S. economy. Structural Risk (Political Risk). In addition, past periodic demands by the Province of Quebec for sovereignty have significantly affected equity valuations and foreign currency movements in the Canadian market.

Claymore/Zacks International Yield Hog ETF is also subject to the following risks:

Canadian Risk. As the Fund invests in Canadian royalty trusts and stocks listed on the Toronto Stock Exchange, the Fund is subject to the following risks: Commodity Exposure Risk. The Canadian economy is very dependent on the demand for, and supply and price of, natural resources. The Canadian market is relatively concentrated in issuers involved in the production and distribution of natural resources. There is a risk that any changes in these sectors could have an adverse impact on the Canadian economy. Reliance on Exports Risk. The Canadian economy is dependent on the economies of the United States as a key trading partner. Reduction in spending on Canadian products and services or changes in the U.S. economy may cause an impact in the Canadian economy. U.S. Economic Risk. The Canadian economy may be significantly affected by the U.S. economy, given that the United States is Canada’s largest trading partner and foreign investor. Since the implementation of the North American Free Trade Agreement (NAFTA) in 1994, total two-way merchandise trade between the United States and Canada has more than doubled. To further this relationship, all three NAFTA countries entered into The Security and Prosperity Partnership of North America in March 2005, which addressed economic and security related issues. The new agreement may further affect Canada’s dependency on the U.S. economy.

Structural Risk (Political Risk). In addition, past periodic demands by the Province of Quebec for sovereignty have significantly affected equity valuations and foreign currency movements in the Canadian market.

Emerging Markets Risk. 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 described above, but to a heightened degree. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and in price volatility. Emerging market countries may have policies that restrict investment by foreigners, or that prevent foreign investors from withdrawing their money at will.

REIT Risk. 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. In addition, a REIT that fails to comply with federal tax requirements affecting REITs may be subject to federal income taxation, or the federal tax requirement that a REIT distribute substantially all of its net income to its shareholders may result in a REIT having insufficient capital for future expenditures. The value of a REIT can depend on the structure of and cash flow generated by the REIT. In addition, like mutual funds, REITs have expenses, including advisory and administration fees, that are paid their shareholders. As a result, you will absorb duplicate levels of fees when the Fund invests in REITs. In addition, REITs are subject to certain provisions under federal tax law. The failure of a company to qualify as a REIT could have adverse consequences for the Fund, including significantly reducing return to the Fund on its investment in such company.

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Master Limited Partnership Risk . Investments in securities of master limited partnerships involve risks that differ from an investment in common stock. Holders of the units of master limited partnerships 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 master limited partnerships. In addition, conflicts of interest may exist between common unit holders, subordinated unit holders and the general partner of a master limited partnership, including a conflict arising as a result of incentive distribution payments.

Risks of Investing in Other Investment Companies. Investments in securities of other investment companies involve risks, including, among others, the fact 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. The Fund must continue, at the same time, to pay its own management fees and expenses with respect to all of its investments, including shares of other investment companies. The securities of other investment companies may also be leveraged and will therefore be subject to certain leverage risks.

The Claymore/Robb Report Global Luxury Index ETF is also subject to Luxury Risk .The success of companies that sell luxury goods and services may depend heavily on the disposable household income and consumer spending of a relatively small segment of the general population, rather than the consumer population as a whole. Changes in consumer taste among such segment of the population can also affect the demand for, and success of, luxury goods and services in the marketplace. Consumer spending on luxury goods and services can also be adversely affected as a result of declines in consumer confidence levels, even if prevailing economic conditions are favorable. In an economic downturn, consumer discretionary spending levels generally decline, often resulting in disproportionately large reductions in the sale of luxury goods and services.

The Claymore/Clear Global Timber Index ETF is also subject to the following risks:

Timber Risk. The market value of securities of global timber companies may be affected by numerous factors, including events occurring in nature and international politics. For example, the volume and value of timber that can be harvested from timberlands may be limited by natural disasters and other events such as fire, volcanic eruptions, insect infestation, disease, ice storms, wind storms, flooding, other weather conditions and other causes. In periods of poor logging conditions, global timber companies may harvest less timber than expected. Global timber companies involved in the forest, paper and packaging products industries are highly competitive globally, including significant competition from non-wood and engineered wood products, and no single company is dominant. These industries have suffered, and continue to suffer, from excess capacity. Global timber companies are subject to many federal, state and local environmental, health and safety laws and regulations, particularly with respect to the restoration and reforestation of timberlands, harvesting timber near waterways, discharges of pollutants and emissions, and the management, disposal and remediation of hazardous substances or other contaminants. Political risks and the other risks to which foreign securities are subject may also affect domestic companies in which the Fund may invest if they have significant operations or investments in foreign countries. In particular, tariffs, quotas or trade agreements can also affect the markets for products of global timber companies, particularly wood products. In addition, rising interest rates and general economic conditions may affect the demand for timber products.

Emerging Markets Risk Emerging market countries are countries that major international financial institutions, such as the World Bank, generally consider to be less economically mature than developed nations. Emerging market countries can include every nation in the world except the United States, Canada, Japan, Australia, New Zealand and most countries located in Western Europe. Investing in foreign countries, particularly emerging market countries, entails the risk that news and events unique to a country or region will affect those markets and their issuers. Countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets. The economies of emerging markets countries also may be based on only a few industries, making them more vulnerable to changes in local or global trade conditions and more sensitive to debt burdens or inflation rates. Local securities markets may trade a small number of securities and may be unable to respond effectively to increases in trading volume, potentially making prompt liquidation of holdings difficult or impossible at times.

Industry Concentration Risk. As the Index is comprised of issuers in the global timber industry, the Fund is therefore focused in that industry. Accordingly, the Fund may be subject to more risks than if it were broadly diversified over numerous industries and sectors of the economy.

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.