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Media ETF Not Stirred by Talk of Dish, DirecTV Marriage


Shares of the PowerShares Dynamic Media Portfolio (PBS) are trading higher by just pennies Wednesday after despite talk of possible marriage of two of the ETF’s top-10 holdings.

Earlier Wednesday, Alex Sherman for Bloomberg reported Dish Network’s (DISH) Chairman Charlie Ergen contacted DirecTV (DTV) CEO Mike White to talk about a merger of the satellite television giants.

“ Although White is hesitant to pursue a deal, he hasn’t ruled it out entirely, one person said. The talks are being conducted at a senior level with no official process yet under way, several people said,” according to Bloomberg. Shares of DirecTV are up nearly 8% at this writing while Dish is higher by 9.4%.

DISH is the largest holding in PBS with a weight of 5.25% while DirecTV is the ETF’s sixth-largest holding with an allocation of 4.99%, according to PowerShares data.

Of nearly 900 ETFs tracked by S&P Capital IQ, the $300.8 million PBS is the only one that features both Dish and DirecTV among its top-10 holdings, according to the research firm.

DirecTV is also a top-10 holding in the PowerShares Buyback Achievers Portfolio (PKW), but at a weight of just 2.3%. Along with other discretionary ETFs, PBS has struggled this year, but the ETF has been one of the best funds tracking discretionary stocks over the past several years. Since the March 2009 market bottom, PBS has more than quadrupled. [Discretionary ETFs Slide]

Other top-10 holdings in PBS include Walt Disney (DIS), Google (GOOG) and Facebook (FB).

PowerShares Dynamic Media Portfolio

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Google and Facebook.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.