Yesterday, my 11-year old daughter and I went to see the new Disney/Pixar film, "Ratatouille" (Rat-a-too-ee). In it, a rat named Remy dreams of becoming a famous French chef.
(Don’t worry, this is still ETF Expert. I have not transformed this weblog into a site for movie reviews.)
The backdrop for Ratatouille is France. However, the messages are decidedly American, including: (1) Recognize your unique talents, (2) Pursue your dreams with all that you’ve got, and (3) Invest in ideas with genuine potential.
In truth, I was pleasantly surprised to see "Big Business" stick with pro-capitalism themes. After all, if an individual doesn’t have the freedom to capitalize on his/her own unique abilities, nobody else would be able to benefit from what that person has to offer the world. Similarly, if Disney/Pixar didn’t have the freedom to make their product and release it near the July 4th holiday (e.g., when more Americans have leisure time), few would be able to invest in and profit from the company’s success.
Okay… so perhaps I am in the star-spangled spirit. And perhaps I feel a bit compelled to wonder about baseball, hot dogs and apple pie. Are there ETFs that capitalize on our free time, whether that is going to a Disney film or attending a baseball game? Are there ETFs that do well when restaurants succeed?
Yes and yes. PowerShares Dynamic Leisure & Entertainment (PEJ) has gained more than 6% year-to-date on the strength of names like Disney, Marriott and MGM Mirage. Powershares also has PowerShares Dynamic Food & Beverage Fund (PBJ). This ETF has corporations like McDonalds and Yum Brands, and PBJ is up more than 5% in 2007 as well.
Still, I would be remiss if I failed to mention the largest piece of American value, the Dow Jones Industrials Diamond (DIA). According to Tom Lydon of ETF Trends, the Diamond Trust (DIA) represents a pure American play. So if you want a combination of American leisure (e.g., Disney), apple pie (e.g., McDonalds) and automotive ingenuity a la Chevrolet (e.g., GM), the Dow Jones Industrials Diamond Trust DIA may be your ticket to independent investing.