 The
Invesco S&P Spin-Off ETF (CSD) is an exchange-traded fund that seeks
to track the performance of the S&P U.S. Spin-Off Index, which is
designed to measure the performance of U.S. companies that have been
spun off from a parent company within the past four years. The ETF was
launched on June 25, 2006.
The fund has a diversified portfolio
with holdings in a variety of sectors, including consumer
discretionary, industrials, health care, technology, and financials.
As of March 23, 2023, the top three holdings of CSD were
NortonLifeLock Inc, Alcon Inc, and Carrier Global Corp.
The CSD
ETF has a relatively low expense ratio of 0.62%, which is lower than
the average expense ratio of actively managed mutual funds. It is also
relatively small in terms of assets under management, with a total net
asset value of around $1.5 billion as of March 23, 2023.
Investing in CSD can provide investors with exposure to a unique
segment of the U.S. equity market that has the potential to outperform
the broader market. Spin-offs can often benefit from improved
management focus and greater flexibility, as well as the potential for
enhanced earnings growth and shareholder value creation. However, as
with all investments, there are risks associated with investing in
spin-offs, including volatility and liquidity risks, as well as risks
related to the performance of the underlying companies. As such,
investors should carefully consider their investment objectives and
risk tolerance before investing in CSD or any other ETF.
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