You Might Be Spinning Your Wheels With This ETF (CSD)
The ETF Professor never ceases to be amazed at what kinds of ETFs issuers will come up with. So the Professor wasn't surprised to learn about the Claymore/Beacon Spin-Off ETF (NYSE: CSD).
CSD has been around for almost three years focusing on publicly traded spin-offs from a variety of companies. Top holdings included Discover Financial Services (NYSE: DFS), Dr. Pepper Snapple Group (NSYE: DPS) and VMware (NYSE: VMW).
While the Professor admits there are some decent stocks held by CSD, the performance of the ETF since inception has been less than awe inspiring. CSD is up just 0.4% since its public debut.
The Professor thinks the idea behind CSD is a novel one, but it has failed to garner must investor attention. CSD trades barely more than 4,000 shares a day and until some buyers start coming in, the Professor urges extreme caution with this ETF.
