The ETF has a 5.2% weight to Mallinckrodt (NYSE: MNK). Not only has the Ireland-based specialty pharma maker spent time as one of the most heavily shorted stocks this year, giving it exposure to the potential of a short-covering rally, but hedge funds are also stepping into Mallinckrodt from the long side.

Additionally, CSD’s second-largest holding with a weight of almost 5.3%, WhiteWave Foods (NYSE: WWAV) has been on the receiving end of takeover speculation in the wake of General Mills’ (NYSE: GIS) deal to buy Annie’s (NYSE: BNNY) announced earlier this week.

Including Mallinckrodt, CSD’s total health care weight at the end of the second quarter was 14.3%, not a bad trait when that sector is the top performer in the S&P 500 this year.

Guggenheim Spin-Off ETF

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