4 ETFs React to Nestle and Starbucks Joining Forces

Nestle and Starbucks are joining forces to pump new flavor into the coffee industry and the related ETFs are reacting. Nestle is going to start selling Starbucks coffee and will pay the U.S. chain $7.15 billion.

Nestle shares rose as much as 0.8 percent in early Zurich trading. The stock has dropped about 9 percent this year.

Related: Your Starbucks Habit is Killing Your Retirement

Let’s take a look at how ETFs with Nestle and Starbucks exposure are doing Monday at 11 a.m. Eastern time according to Yahoo Finance.

Top ETFs with exposure to Nestle React

  • iShares MSCI Switzerland ETF Europe Equities (EWL) with a 18.62% weighting up 0.70%.
  • iShares Global Consumer Staples ETF Consumer Staples Equities (KXI) with a  7.42% weighting up 0.15%.

Top ETFs with exposure to Startbucks React

  • iShares Evolved U.S. Consumer Staples ETF Consumer Staples Equities (IECS) with a 3.58% weighting down 1.29%
  • Consumer Discretionary Select Sector SPDR Fund Consumer Discretionary Equities (XLY) with a 2.79% holding up 0.27%.

Nestle Will Use Starbucks

Nestle will use the Starbucks brand in its Nespresso and Dolce Gusto capsule systems next year.

Nestle appears to have struck the Starbucks deal in order to solidy its leading position in the international coffee market. According to Reuters, “Starbucks says it will use the cash to speed up share buybacks. The products will be distributed using Nestle’s network, but Nestle’s name won’t be on the packaging.”