With all the attention SPACs have received, it was only a matter of time before an ETF covering SPACs came to market. Yesterday, the Defiance NextGen SPAC IPO ETF (SPAK) launched and I will be going through an overview of the fund in this article. I will be covering key details, index methodology/weighting, and examining the holdings.
SPAK Key Details
-Expense ratio: 0.45%
-Number of holdings: 35
-Rebalance frequency: Quarterly
SPAK Index and Methodology
Looking into the index and methodology, I found some interesting information on which SPACs are included in the fund. SPAK focuses the majority of its holdings on SPACs that have already completed a merger with a target company. As is noted below 80% of the fund is allocated towards that area and only 20% are allocated to SPACs that have not completed a merger. Within that 20%, the majority of that weight is allocated to SPACs