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.)
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