This Thanksgiving, about 90% of American households will have a turkey dinner. If you are not feeling like basting most of the day, plenty of restaurants are throwing their doors open. The urge to fill our bellies with comfort food could be a boon for food and beverage exchange traded funds (ETFs).
Although Thanksgiving is a day to be grateful for all you have, the fact is, many are not thankful for cooking the huge feast. Michelle Manetti for Your Nabe reports that plenty of restaurants will do the cooking for those that opt not. The idea is that people can dine and have a nice dinner, plus enjoy the spirit of the holiday, without the cooking (and mess) that entails. [Food and Beverage ETFs Serve Returns.]
With all of the cooking going on this holiday, can the related food and beverage ETF get a rally? [How To Play Black Friday With ETFs.]
A number of turkeys, potatoes, stuffing and cranberries will be flying off shelves, not to mention pumpkin pie. And don’t forget, many are fueling up early to get a jump on those day-early Black Friday deals.
Have a nice holiday, and don’t over-stuff yourself! Consider one of these ETFs, both of which hold a mix of many companies that produce a lot of the ingredients millions will be consuming come Thursday:
- PowerShares Dynamic Food & Beverage (NYSEArca: PBJ): Coca-Cola is5.2%; General Mills is 4.5%; Del Monte is 3%; McCormick & Co. is 2.7%; Hormel is 2.7%.
- Consumer Staples Select Sector SPDR (NYSEArca: XLP): Kraft is 4.6%; Altria is 4.4%; General Mills is 2.3%; Heinz is 1.6%.
Tisha Guerrero contributed to this article.
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.