Target the Red-Hot Spin-Off and Merger Space With These ETFs

Summary

Spin-offs and mergers may appeal to investors because they can signal a company's efforts to focus its business, realign its operations, or even seek new leadership. In the case of large conglomerates, it can be hard for investors to accurately assess which units might be the most profitable or fastest-growing—a spin-off can help clarify. These deals can also lead to new opportunities to find high-growth businesses that were once attached to more stable firms, or to access mispriced stocks that have been impacted by forced selling by institutional investors or funds. However, because keeping track of all of the M&A and spin-off activity taking place across the market may take up a disproportionate amount of an investor's time, two exchange-traded funds (ETFs) are uniquely designed to focus on developments of this kind. A High-Flying Spin-Off Fund Successfully Capturing Growth OpportunitiesThe Invesco S&P Spin-Off ETF NYSEARCA: CSD targets an index of firms that have recently gone through a split, leading to the dismantling of a portion of a business and its formation as a new publicly traded entity. Investors in this fund make a bet that the spin-off process may be able to open access to new value in this new company, allowing for outsized growth. Invesco S&P Spin-Off ETF TodayCSDInvesco S&P Spin-Off ETF$133.35 -2.59 (-1.91%) As of 05/15/2026 04:10 PM Eastern52-Week Range$78.27▼$138.15Dividend Yield0.11%Assets Under Management$190.75 million Specifically, CSD focuses only on the companies that have been spun off (and only those going through this process within the last four years), not the preexisting firms that did the spinning off. It also includes companies across the full market capitalization spectrum, given that many companies emerging from spin-offs are substantially smaller than their larger siblings. The majority of firms in CSD's basket are mid-cap companies, and it includes both highly publicized spin-offs like GE Vernova Inc. NYSE: GEV as well as more n...