Invesco S&P Spin-Off ETF

Invesco S&P Spin-Off ETF (CSD) is an index fund that holds U.S. companies spun off from a parent company within the past four years, following the S&P U.S. Spin-Off Index. Its portfolio is small and concentrated, with 28 holdings and 62.4% in the top 10 as of July 31, 2026. It costs 0.65% a year, below the 0.72% average of similar funds, but its price has swung far more than the broad market.

• Over the year to Oct 27, 2026, CSD returned +29.7%, 1st of 3 among similar funds.
• Its 5-year annualized return was +15.1% and its 10-year +12.7%.
• In the 2020 COVID crash it fell 53.3% and regained its old high 7.8 months after the low.
• Its worst full calendar year was 2008 (-55.2%); its best was 2009 (+65.2%).
• The deepest fall in its price history was 70.5% (Jul 19, 2007 to Nov 20, 2008), recovered by Dec 11, 2012.

As of Jul 31, 2026, the fund held 28 securities; the ten largest made up 62.4% of assets. It also reported 6.67% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $73.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +8.10%, +8.46%, -11.31%.

CSD is an index fund. It aims to match the S&P U.S. Spin-Off Index, which S&P Dow Jones Indices builds and maintains. The index picks U.S. companies from the S&P U.S. BMI, a broad U.S. stock index, that were separated from a parent within the past four years. Each must have a float-adjusted market value of at least $1 billion when it joins. Float-adjusted means only shares available to the public count. The index counts three kinds of separation. In a spin-off, a parent turns a division into a new company. In a carve-out, the parent sells a minority stake to the public. In a split-off, parent shareholders trade their shares for shares of the subsidiary.

As of June 30, 2026, the index had 25 companies worth between $1.7 billion and $337 billion. The fund uses full replication, which means it owns essentially every stock in the index at its index weight. Companies drop out after four years and new spin-offs join, so the lineup changes often. Portfolio turnover was 117%, and that much trading can raise costs.

The fund is non-diversified, so it can put more money into a few companies. It can also concentrate in one industry when the index does. As of April 30, 2026, it had significant exposure to industrials. It uses no leverage, and it held no derivatives as of July 31, 2026.

• CSD charges 0.65% a year, versus an average of 0.72% for the similar funds below (2nd of 3, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.01% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $821 over 10 years (assuming a 5% annual return).

CSD holds a concentrated, non-diversified basket of recent spin-offs that has fallen much harder than the market in past downturns.

CSD could add exposure to newly independent U.S. companies such as GE HealthCare, Veralto and GE Vernova. The price for that is steep swings. The fund lost 69% in the 2008 financial crisis and took about 46 months to recover. Its worst calendar year was 2008, at -55.2%. In the 2020 COVID crash it fell 53.3%, then recovered in about eight months. In 2022 it dropped 24.1% and took 14.5 months to get back. Anyone who had to sell shares in years like those would have locked in deep losses. It pays almost no income: the yield was 0.13% as of October 27, 2026, paid once a year. The expense ratio is 0.65%. In the SEC's standard example, that comes to $66 in the first year on a $10,000 investment. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).