The most established spinoff ETF has underperformed the key spinoff benchmark by almost a half over 10 years
Corporate spinoffs such as Ferrari (from Fiat Chrysler) and PayPal (from eBay) have a well-documented history of outperforming the market. So it is a shame the few funds that invest exclusively in spinoffs haven’t.
The most straightforward way for investors to play the spinoff theme is to buy an exchange-traded fund. The most established of these is the Guggenheim S&P Spin-Off ETF, which has about $205 million in assets.