Invesco S&P Spin-Off ETF

CSD

Market cap $79.4M

CSD is comprised of U.S. companies that have spun-off from their parent companies over the last four years. Its ER is 0.64% and the ETF has $63 million in AUM. Long-term research provided by S&P Global Market Intelligence suggests investing in spin-offs can substantially outperform the broader market. However, that hasn't translated into solid real-world results. CSD has struggled since its Index change in May 2016, delivering about half the total return of the S&P 500.

The new year is poised for a resurgence in tech IPOs, as lower interest rates and an investor shift to small- and mid-cap companies combine to create a more welcoming market for debuts. The current environment presents the most favorable conditions for the recovery of IPOs in the past three years. The S&P 400 Midcap Index and the S&P 600 Index have outperformed the S&P 500 Index since the US election Nov. 5.

Today, we discuss three thematic ETFs to buy for investors looking to tap into future trends, consumer preferences or disruptive technologies. Metrics suggest how fast investor sentiment towards certain themes, industries, countries or stocks may change on Wall Street.

US equities, as measured by the S&P 500 Index, have performed strongly so far in 2023.