Emmy Awards Do Nothing For Relevant ETFs
The 2013 Emmy Awards were handed out Sunday, but U.S. equity markets are not saying congratulations.
Shares of companies that were hoping for a post-Emmy bounce have received no such luck, indicating that awards shows perhaps lack the same ability to impact media stocks the way big movie successes failures do.
With media and entertainment stocks, including Netflix (NASDAQ: NFLX) and CBS (NYSE: CBS) trading lower today, at least one high-flying ETF is taking a breather. Some others with decent exposure to Emmy stocks are down on the day as well, but this could be a buying opportunity in these soaring funds.
PowerShares Dynamic Media Portfolio (NYSE: PBS)
In early December 2012, the PowerShares Dynamic Media Portfolio was highlighted as one sector ETF to play in 2013. That proved to be prescient advice because PBS has surged 42.8 percent since then.
Over that same period, PBS has outpaced the Consumer Discretionary Select Sector SPDR (NYSE: XLY) by over 1,000 basis points, a relevant comparison because nearly 62 percent of PBS's weight resides in the discretionary sector.
Top-10 holdings CBS and Time Warner (NYSE: TWX), thanks to another year of HBO Emmy success, won plenty of praise at the Emmys. CBS is the parent company of Showtime, the home network for Homeland, which along with HBO's Boardwalk Empire and Behind The Candelabra, turned in an impressive Emmy night.
PBS also has an almost 2.9 percent weight to Netflix, but that stock is down today as well despite House of Cards making its presence felt at the Emmys.
Related: Netflix Surge Helps Surprising ETF.
Still, it is fair to say PBS is not being sold-off too hard on Monday. Here is a fun fact: Homeland's new season starts on Sunday, September 29. In the six months after the show's season started last year, PBS jumped almost 17 percent.
The PowerShares Dynamic Leisure and Entertainment Portfolio (NYSE: PEJ), which has a five percent weight to Time Warner, is also lower on Monday, but on light volume. A decline of less than one percent barely dents PEJ's almost 33 percent year-to-date gain.
The First Trust ISE Cloud Computing Index Fund (NASDAQ: SKYY), home to one of the larger ETF allocations to Netflix is also lower Monday, but again, this ETF has been on a powerful ride higher in 2013. Even with today's 1.2 percent decline, SKYY is still up nearly 22 percent in the past 90 days.
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Disclosure: Author owns none of the securities mentioned here.
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