The Claymore/Clear Spin-off (CSD) exchange traded fund (ETF) might see its holdings shift if the recently reported spinoffs are created and do well. The upcoming company spinoffs include:
- A Phillip Morris International unit created from Altria Group (MO), according to Vinnee Tong for the Associated Press.
- Intel (INTC) and STMicroelectronics want to spin off and combine a flash memory business, reports Ben Ames for InfoWorld.
CSD tracks the Spin-off Index that is designed to represent the stocks of companies that recently have been "spun-off" from larger corporations. These spin-off companies are expected to be able to better focus on their core market segment and thus outperform the Russell 2000 Small-cap Index. The Spin-off Index is adjusted semi-annually to ensure timely stock selections. Some of CSD’s current top holdings include Expedia (EXPE), Viacom (VIA-B) and Fidelity National Financial (FNF). It’s currently up 14.4% year-to-date.
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.