Again, buying any stock or ETF in the hopes of takeover talk can prove frustrating. And the primary benefit of PSL comes from its potential to deliver more rapid gains with a strategy in a sector rarely seen as a momentum destination. [Staples ETFs Lead Market]
Still, PSL’s current lineup has already given investors exposure to several announced takeovers or sizable outside investments when including Coca-Cola’s now 16% stake in Green Mountain Coffee Roasters (NasdaqGS: GMCR). Green Mountain is PSL’s second-largest holding at 4%.
Other confirmed targets among PSL’s holdings include Hillshire, Pinnacle Foods and Safeway (NYSE: SWY), which is being acquired by Cerberus Capital Management.
PowerShares DWA Consumer Staples Momentum Portfolio
Tom Lydon’s clients own shares of Coca-Cola and P&G.