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Description:

This is an index designed to actively track stocks that are spin-offs from other companies, based on the idea that these companies can now better focus on their own specific strategy and unlock value.

As Stated on Clear Indexes website, the index is put together using the following methodology:

"The Index constituent selection model evaluates and selects stocks from a universe of recently spun-off companies using a proprietary, 100% rules-based methodology developed by Clear. The Index constituent selection methodology utilizes multi-factor proprietary selection rules to seek to identify those stocks that offer the greatest potential from a risk/return perspective while maintaining industry diversification. The Index is adjusted semi-annually to ensure timely stock selections. "

More specifically"

INDEX CONSTRUCTION

"-The Spin-Off Index comprises the 40 highest-ranking stocks chosen from the universe of spun-off companies.

-Each company is ranked using a 100% quantitative rules-based methodology that includes composite scoring of several growth-oriented, multi-factor filters, and is sorted from highest to lowest.

-The 40 highest-ranking stocks are chosen and given a modified market cap weighting with a maximum weight of 5%.

-The constituent selection process and portfolio rebalance is repeated semi-annually"

According to Clear, their index has outperformed the S&P 500 at a 10.75% annualized rate over the past 5 years.

For more information:
http://www.clearindexes.com/Indexes.aspx

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