The latest exchange traded funds (ETFs) have taken it up a notch, and in an effort to be noticed, they are entering the world of discretionary allocations/active management. The Claymore/Clear Spinoff (CSD) is composed of subsidiaries of public companies that get spun out into the public through a public offering, thus creating potential artificial selling pressure, reports James Altucher of The Street.com. This pressure creates the buying opportunity, and CSD filters through the opportunity and statistics and finds the highest-ranking spin-offs. Growth prospects and cash flows dictate and the index is rebalanced semiannually. This ETF would need some active management while following the index.
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.