A Rise In Advertising Revenue May Attract Investors To The Media ETF

“This will be an important week of earnings for companies in the media sector and the media ETF PowerShares Dynamic Media (NYSE:PBS). Since advertising is highly cyclical, it will also shine a light on the health of the economic recovery. Lately, things have been good for this media ETF. Performance has been strong all year, and earnings season has been positive as well. Last Thursday, Viacom (NYSE:VIA) reported that profits increased in the latest quarter by 38% over the year ago period. Viacom accounts for 5.2% of PBS,” Don Dion Reports From The Street.

Dion goes on to say, “Comcast’s (NASDAQ:CMCSA) new stake in NBC Universal shows that there is interest in acquiring assets within the industry. Shares of Comcast rallied 6.3% on Thursday of last week, a day after the firm reported it beat earnings by a penny, helping to lift PBS by 2.3% on the day. The company doesn’t generate the bulk of its revenue from advertising, but it said ad revenue is recovering, a positive sign for the holdings in PBS. CMCSA is the top holding of PBS and accounts for 5.2% of the fund.”

“Since PBS is a well-balanced fund, the performance of any one of these stocks on a single day will not sway the entire fund. PBS selects its components on the basis of a range of investment criteria, rather than just relying on market cap, which is why no single holding accounts for much more than 5% of the fund. Even though no single company’s fluctuations will alter the fund significantly, a trend is building as these firms all report rising advertising revenue. The flurry of big reports should help bring attention to the media sector and its strong performance this year, and this positive news will add to the attractiveness to a sector that has already performed well in the first four months of 2010,” Dion Reports.

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We have put together some details on the PowerShares Dynamic Media ETF (NYSE:PBS) including a list of the holdings within the ETF below:

PowerShares Dynamic Media (NYSE:PBS)

The investment seeks investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Dynamic Media Intellidex. The fund normally invests at least 80% of assets in common stocks of media companies. It may invest at least 90% of assets in common stocks that comprise the Media Intellidex. The Intellidex is comprised of 30 U.S. media companies. It is nondiversified.


PBS – Dynamic Media Portfolio
As of 4/30/2010
Fund Holdings are subject to change  
  % of Fund 
Consumer Discretionary
(CMCSA) Comcast Corp. (Cl A)  5.23%
(VIA.B) Viacom Inc. (Cl B)  5.19%
(DIS) Walt Disney Co.  5.14%
(NWSA) News Corp. (Cl A)  5.02%
(TWX) Time Warner Inc.  4.96%
(DTV) DIRECTV  4.66%
(MHP) McGraw-Hill Cos.  4.29%
(SSP) E.W. Scripps Co. (Cl A)  3.41%
(ETM) Entercom Communications Corp. (Cl A)  3.40%
(HSNI) HSN Inc.  3.30%
(RCNI) RCN Corp.  3.18%
(VCI) Valassis Communications Inc.  3.03%
(CBS) CBS Corp (Cl B)  2.96%
(LAMR) Lamar Advertising Co. (Cl A)  2.94%
(HHS) Harte-Hanks Inc.  2.88%
(WPO) Washington Post Co. (Cl B)  2.87%
(WMG) Warner Music Group Corp.  2.84%
(IPG) Interpublic Group Of Cos.  2.82%
(OMC) Omnicom Group Inc.  2.77%
(SIRI) Sirius XM Radio Inc.  2.75%
(SNI) Scripps Networks Interactive Inc. Cl A  2.72%
(MNI) McClatchy Co. (Cl A)  2.69%
(GCI) Gannett Co. Inc.  2.67%
(DISH) DISH Network Corp. (Cl A)  2.64%
(JW.A) John Wiley & Sons Inc. (Cl A)  2.39%
(SCHL) Scholastic Corp.  2.18%
(NYT) New York Times Co. (Cl A)  2.15%
(IHS) IHS Inc. Cl A  2.32%
Information Technology
(GOOG) Google Inc. (Cl A)  4.35%
(AOL) AOL Inc.  2.24%
You cannot invest directly in the index. Fund holdings and index holdings will differ.
Chart forPowerShares Dynamic Media (PBS)

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