ETF Trends
ETF Trends

The Claymore/Clear Spin-Off (CSD) is a new type of exchange traded fund (ETF) devoted to spin-off companies. Parent companies spin off a subsidiary to raise needed money and to shed a business that has collapsing profit margins or to separate legal liabilities. A spin-off can also be a result of a merger-gone-bad. John Spence of MarketWatch reports that spin-offs and carve-outs are more flexible and can do what’s best for their business – not the corporate parent.

This ETF will be based on the Clear Index composed of 40 companies that have split from their parents over the previous 36 months.  Holdings are small and mid-cap stocks.

(This story has been corrected to include the correct symbol as well as inclusion of carve-outs in the make up.)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.