ETFs For The End Of The NFL Lockout
While the February through July time period isn't exactly a fertile time of the year for NFL fans, excluding the April draft, 2011 has provided plenty of headlines and drama as NFL's owners and players have been locked in an epic labor battle that has threatened the 2011 season.
Of course, this is all about the dollars and with the NFL being the most profitable of the major sports leagues in the U.S., arguments between the owners and players have been heated.
That said, late last week, it looked like some progress was being made and that we might have an NFL season after all this year. That's good news for more than just the owners, players and fans. It could be good news for investors as well. Here are some ETFs that might bounce when the NFL lockout finally comes to an end.
1) Market Vectors Gaming ETF (NYSE: BJK): It would be too easy to put a media ETF on this that is loaded with the stocks of companies that broadcast NFL games and yes, an ETF like that could get a small pop when the lockout ends, but BJK might be one some pundits forget about with regards to the lockout. Think companies like Las Vegas Sands (NYSE: LVS) and Wynn Resorts (Nasdaq: WYNN) don't want the lockout to end? They most certainly do. No NFL means no betting on the NFL and that's not good news for casino operators in Nevada.
2) Consumer Staples Select Sector SPDR (NYSE: XLP): Not only do companies like Coca-Cola (NYSE: KO), PepsiCo (NYSE: PEP) and Wal-Mart (NYSE: WMT) run a lot of commercials during NFL games, NFL fans also head to their local Wal-Mart to load up on drinks and snacks for game watching parties every Sunday. Consider XLP another slightly obscure play on the end of the lockout.
3) Consumer Discretionary Select Sector SPDR (NYSE: XLY): XLY is the obvious beneficiary of the NFL lockout coming to an end. Comcast (Nasdaq: CMSCSA), DirecTV (NYSE: DTV) and Time Warner Cable (NYSE: TWC) are all found in XLY's fray. In addition, Walt Disney's (NYSE: DIS) ESPN, CBS (NYSE: CBS) and News Corp. (Nasdaq: NWS) are the primary broadcasters of NFL games and they're all major XLY components.
