Benzinga's  Instablog

Send Message
Benzinga is an innovative financial media outlet that empowers its users with high-quality, unique ideas that is coveted by the Street's top traders.
My company:
My blog:
  • ETFs For GM's Sequel? Maybe, Maybe Not 0 comments
    Nov 19, 2010 1:05 PM | about stocks: GM, F, PMA, XLY, BWA, AXL

    By Jason Raznick

    Alright, General Motors (NYSE:GM) has finally graced us with its IPO and sequel as a public company.

    For investors looking to play the potential success of GM the sequel without jumping directly into that stock, derivative plays are few and far between.

    Ford (NYSE:F) immediately jumps to mind, but what about ETF plays? GM isn't in any ETFs yet and it will take a little while for the stock to make its way into the S&P 500, so where do ETF investors turn to benefit from GM's success, assuming that success is realized?

    One option would be the thinly traded PowerShares Active Mega Cap ETF (NYSEARCA:PMA). Ford accounts for more than 6% of this fund's weight.

    Another option would be the Consumer Discretionary Select Sector SPDR (NYSEARCA:XLY) of which Ford is a top-10 holding at 4.7%.

    Don't bother stretching too auto parts suppliers through ETFs because companies like American Axle (NYSE:AXL) and Borg Warner (NYSE:BWA) don't account for even 2% of any of the ETFs that they're found in.

    All this makes me think that if GM performs well, it's high time for an auto-specific ETF.

    Disclosure: No position

    Disclosure: No position
    Stocks: GM, F, PMA, XLY, BWA, AXL
Back To Benzinga's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.