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4. Claymore CEF Goldman Sachs Connect ETN (GCE)

This ETF is also referred to as the G-C-E. Just how weird is it? According to Index Universe: “Claymore’s CEF GS Connect ETN is a platypus pregnant with a dinosaur in the world of bizarre exchange-traded products. It is an ETF that exclusively holds closed-end funds. Most ETF investors hate closed-end funds, since they expose investors to premiums and discounts. Wrapping them in an ETF does nothing to avoid that flaw. Add in the fact that it’s an ETN and … well … you have an unusual package.”

A spokeswoman for Guggenheim Investments, which oversees the Claymore fund, said, “We do a very robust business in Unit Investment Trusts of closed end funds, and have for a long time. These portfolios offer efficient access to a basket of closed end funds that track similar investment objectives. In the case of GCE, the product is designed to cover the most attractive segment of the taxable closed end fund universe as represented by their discounts and distribution rates. Therefore, there’s not a lot of exposure to CEFs trading at premiums.”

Photo: Gary Lewis | Photolibrary | Getty Images