The De-SPAC ETF

The De-SPAC ETF (NYSE: DSPC) is the first exchange traded fund to offer pure-play exposure to private companies that come public as the result of a merger with a Special Purpose Acquisition Company. SPACs are one of the most disruptive structures to hit the U.S. capital markets over the past several years. Along with an increase in the number of SPAC IPOs, larger deal sizes and seasoned sponsor teams are drawing investors to this once underfollowed market. Higher profile de-SPACs over the past several years include Virgin Galactic Holdings, Draftkings Inc., and QuantumScape Corp.

DSPC’s unique portfolio gives investors easy access to some of the world’s newest and most exciting public companies within an ETF’s familiar wrapper that offers diversity, tax-efficiency and liquidity.

The De-SPAC Index Sector Weightings

Consumer, Cyclical40%
Technology24%
Consumer, Non-cyclical16%
Basic Materials8%
Communications8%
Industrial4%

Index data as of 5/17/21. Index sector weightings are subject to change. The De-SPAC Index is developed and maintained by The Herculoid Group LLC. An index is unmanaged and cannot be subject to a direct investment.

Source: Bloomberg

SPAC Issuance Accelerates through 1Q21

$81.5 Billion Raised in 2020
$97 Billion Raised in 1Q21

(Source: Citi)

SPAC IPO Sizes >$300M since 2018

%

2018

%

2019

%

2020

(Source: Citi)

Stages of a SPAC

U
~4-6 weeks

Initial Due Diligence & Wall Cross

  • Management presentation; Full data room & comprehensive due diligence access; Assess need to raise funds via a Private Investment in Public Equity (PIPE)
l
30-45 Days

Sign Deal

  • Raise fully-committed PIPE (if applicable); Complete due diligence; Prepare purchase agreement and ancillary agreements; Sign definitive agreements and announce deal
Z
45-75 Days

SEC Approval & Investor Marketing

  • File S-4/proxy with SEC as soon as possible post announcement; Launch investor roadshow after initial filing (~1 week, with follow-up calls thereafter); Initial SEC review of filing takes 30 days, with 2-3 rounds of comments thereafter
~15 days

Shareholder Notification, Vote & Closing

  • Shareholder notification and vote; Shareholder redemption elections due 2 business days prior to extraordinary general meeting; Deal closes 1-2 business days post meeting
E

De-SPAC

  • Merged entity starts trading under a new ticker symbol. De-SPAC commences its life as a public company with additional accounting & reporting requirements. Potential for sell-side equity research coverage to help raise investor awareness. Stock may be eligible for broad equity index inclusion.

(Source: Bank of America)

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You can either contact your Financial Advisor to see if DSCP is available on their platform or go through an online broker below:

Robinhood

Fidelity

Charles Schwab

TD Ameritrade

E Trade

Interactive Brokers