The Media ETF Still Has Room To Shine Since It’s Latest Performance

“At the Academy Awards Sunday night, the movie industry’s best and brightest celebrated the finest Hollywood performances in 2009. The media sector, which includes the film industry, has reason to celebrate as well. So far in 2010, the representative ETF, PowerShares Dynamic Media Portfolio(PBS), is outperforming the broader markets. Year to date, the fund is up by 10.7% compared to a 2.5% gain for the S&P 500 Index as represented in SPDRs(SPY), 1.5% for the Nasdaq as tracked by PowerSharesQQQ(QQQQ), and 1.6% for the Dow Jones Industrial Average as represented Diamonds Trust Series 1(DIA),” Don Dion Reports From The Street.
 
Dion goes on to say, “Unlike the broader markets, PBS was not derailed significantly by the news of China’s credit-tightening policies after Jan. 19. During the market dip that occurred after that time, PBS spent far fewer days beneath its 50-day moving average than SPY, QQQQ, or DIA. Furthermore, PBS’s 50-day moving average trend line did not even retreat from its upward sloping performance, while the slopes of the trend lines for SPY, QQQQ, and DIA, turned negative.”

“What made PBS resilient to the action in the broader markets and will it continue to outperform? I see that PBS’s outperformance certainly has not been driven by its top holding, Google(GOOG), which accounts for 5.0% of the fund and has shed 9.0% year to date. The media sector, which thrives on advertising, will have an improving outlook as economic recovery frees up more money for the advertising budgets of companies. In terms of performance, PBS fell further than the broader markets during the crisis and outperformed during the recovery. On a two-year timeline, PBS has outperformed SPY, but has not yet surpassed QQQQ. Because many of the companies in PBS trade on the Nasdaq is room for this fund to outperform,” Dion Reports.

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Here are some details on the ETFs discussed in the article:

The investment (PBS) 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.

TOP 10 HOLDINGS ( 45.89% OF TOTAL ASSETS)  
 
Company Symbol % Assets
CBS Corporation Class B Common (CBS) 4.88
Comcast Corporation (CMCSA) 5.18
Dreamworks Animation SKG, Inc. (DWA) 3.06
Gannett Co., Inc. Common Stock (GCI) 3.59
Google Inc. (GOOG) 4.89
News Corporation (NWSA) 5.43
DIRECTV (DTV) 4.83
Time Warner Inc. New Common Sto (TWX) 4.64
Viacom, Inc. B N/A 4.53
Walt Disney Company (The) Commo (DIS) 4.86

Chart for PowerShares Dynamic Media (PBS)

The investment (QQQQ) is a unit investment trust designed to correspond generally to the performance, before fees and expenses, of the Nasdaq-100 index. The fund holds all the stocks in the Nasdaq-100 index, which consists of the largest non-financial securities listed on the Nasdaq Stock Market. The fund issues and redeems shares of Nasdaq-100 Index Tracking Stock in multiples of 50,000 in exchange for the stocks in the Nasdaq-100 and cash.

TOP 10 HOLDINGS ( 46.89% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Amazon.com, Inc. (AMZN) 2.26
Apple Inc. (AAPL) 15.5
Cisco Systems, Inc. (CSCO) 2.88
Google Inc. (GOOG) 5.36
Intel Corporation (INTC) 2.31
Microsoft Corporation (MSFT) 5.45
Oracle Corporation (ORCL) 3
QUALCOMM Incorporated (QCOM) 5.45
Research In Motion Limited (RIMM) 2.25
Teva Pharmaceutical Industries (TEVA) 2.43

Chart for PowerShares QQQ (QQQQ)

The investment (DIA) seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the Dow Jones Industrial Average (DJIA). The fund holds the Portfolio and cash, and is not actively “managed” by traditional methods. To maintain the correspondence between the composition and weightings of stocks held by the Trust and component stocks of the DJIA, the Trustee adjusts the portfolio from time to time to conform to periodic changes in the identity and/or relative weightings of index securities, typically within three business days before or after the day on which such changes are scheduled to take effect.

TOP 10 HOLDINGS ( 52.75% OF TOTAL ASSETS)  
 
Company Symbol % Assets
3M Company Common Stock (MMM) 5.98
Caterpillar, Inc. Common Stock (CAT) 4.12
Chevron Corporation Common Stoc (CVX) 5.57
Coca-Cola Company (The) Common (KO) 4.12
Exxon Mobil Corporation Common (XOM) 4.93
International Business Machines (IBM) 9.46
Johnson & Johnson Common Stock (JNJ) 4.66
McDonald’s Corporation Common S (MCD) 4.51
Procter & Gamble Company (The) (PG) 4.38
United Technologies Corporation (UTX) 5.02

Chart for DIAMONDS Trust Series 1 (DIA)

 

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