Rhapsody's Deal is Music to UK ETF's Ears | ETF Trends

The United Kingdom exchange traded fund (ETF) was humming along to news that another subscription music site is going to begin selling digital songs.

Rhapsody wants to challenge iTunes and is therefore offering unprotected digital songs that can be played on any device. The company had previously offered consumers access to its library where they could "rent" music for a monthly fee, but the catch was that the songs didn’t work on Apple’s iPod, reports Jeffrey Bartash for the Wall Street Journal.

Rhapsody’s music service will work on the latest wireless phones from Verizon Wireless. Verizon Wireless is a joint Venture of Verizon Communications (VZ) and Vodafone (VOD), which is 5.9% of the iShares MSCI United Kingdom (EWU).

The fund was also lifted by news in the mining sector, as new reports of interest in a takeover of Rio Tinto (RIO.L), reports Joanne Frearson for Thomson Financial. The Financial Times said that the ArcelorMittal chairman and chief executive wants to secure more supplies of iron ore and is rumored to be exploring entering a takeover battle.

Rio Tinto is 4.1% of EWU. The company was formed by the merger of two British companies, and it works in partnership with its sister company, Rio Tinto Limited, which is based in Australia.

EWU is down 17.7% year-to-date.

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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.