Spinning Right Round: New Spin-Off ETF Debuts

Stocks must have a minimum market value of $500 million and have an average 20-day dollar volume of $500,000 for inclusion in SPUN’s underlying index.

At 1.6%, China is the only emerging market represented in the new ETF. U.K. stocks account for 6.4% while Australia at 5.5% is the only other country to command a weight north of 5%. Overall, SPUN offers exposure to spinoffs hailing from 17 countries.

Consumer discretionary names account for over a quarter of the new ETF’s weight. Financials and industrial command 19.1% and 18.5%, respectively, of SPUN’s weight.

 

Chart Courtesy: Market Vectors