While SPUN targets global companies, the U.S. still makes up the largest portion of the ETF’s portfolio at 66.1%, followed by the U.K. 6.5%, Australia 5.5%, Finland 3.4% and Switzerland 2.5%. Since the portfolio includes foreign companies, the fund is also exposed to some currency risks – a weaker foreign currency could translate to lower U.S.-dollar-denominated returns.
Top sector tilts include consumer discretionary 25.3%, financials 19.1%, industrials 18.5%, materials 9.4% and energy 7.1%.
Additionally, components are equally weighted, so the fund’s largest weight is Global Brands Group Holding 1.6%, followed by Indivior 1.5%, Prothena Corp 1.4%, Starz 1.4% and Wpx Energy 1.4%.
The global spin-off ETF has a 0.55% expense ratio.
Potential investors should use limit orders to better control any trades on SPUN as the fund is relatively new and has not had time to build up an active market base.
Financial advisors who are interested in learning more about company spin-offs can register for the Wednesday, June 17 webcast here.