The Claymore/Beacon Spinoff ETF (CSD) seeks to replicate an index called the Beacon Spin-off Index, which is comprised of roughly 40 companies that have been spun-off within the past two years. The ETF is rebalanced twice per year.
For varying reasons, spin-offs tend to outperform their former parent companies and the market as a whole. To date, there was no way to replicate this phenomena without manually tracking and trading the various spin-offs as they occurred through the years.
Now, CSD is able to do that for you, with a modest 0.6% expense ratio which is less than most actively managed mutual funds. Given the low turnover of the fund, lower tax implications should be anticipated as well.
The ETF has turned in impressive performance vs. the S&P500 as a benchmark (consider that some of the holdings are from international ADRs, but S&P500 was utilized as a common benchmark for US investors):
3 Month: 11% 6%
6 Month: 32% 20%
YTD: 60% 22%
1 Year: 65% 28%
Top 10 Holdings:
DISCOVER FINANCIAL SERVICES 6.77 %
TELEMEX INTERNATIONAL-ADR 5.31 %
MSCI INC-A 5.16 %
LENDER PROCESSING SERVICE 5.13 %
SCRIPPS NETWORKS INTERACT 5.02 %
COVIDIEN PLC 4.74 %
TERADATA CORP 4.58 %
VMWARE INC-CLASS A 4.55 %
DR PEPPER SNAPPLE GROUP 4.43 %
TOTAL SYSTEM SERVICES INC 4.36 %
Be mindful that the ETF has low trading volume which can lead to wide bid/ask spreads, so watch your market vs. limit orders if considering entering into a position.