WHY WOULD CON­SIDER ADDING IT

Finweek English Edition - - FUND IN FOCUS -

The fi­nan­cial mar­kets are full of lit­tle anom­alies. You may have heard of the size ef­fect − smaller com­pa­nies tend to earn higher risk ad­justed re­turns than their large coun­ter­parts. The ‘spin-off ef­fect’ is such an anom­aly − spin-off com­pa­nies tend to per­form bet­ter than con­ven­tional mar­ket port­fo­lios.

No one knows if, or how long, th­ese anom­alies will con­tinue. But this i s one of the more un­pub­li­cised ones I know. But you don’t have to trust just my word − Morn­ingstar has given the Guggen­heim Spin-Off ETF its high­est rat­ing for risk-ad­justed re­turns over three and five years.

ed­i­to­rial@finweek.co.za

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