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tdp2664 InvestorPlace Recently, I compared the compensation of News Corp. (NASDAQ: NWSA ) CEO Rupert Murdoch with that of Philipe Dauman, the highly paid Viacom (NYSE: VIAB ) executive. My conclusion was that even though Viacom’s financial performance has been far superior to News Corp.’s, its return to shareholders has not. In fact, neither stock’s been very good. Nonetheless, investors continue to maintain a fondness for media stocks despite evidence that there are better places to put your money. For those who can’t break free of media, we provide some ETF alternatives. That way, you’ll get your media fix and a little diversification to boot. If you want both companies included in the top 10 holdings of these ETF’s, your selection isn’t very wide. You’d have a much easier time in the mutual fund arena, but that’s a discussion for another day. Exactly five ETFs have News Corp. as a top 10 holding, and only three have Viacom. As I said, it’s slim pickings. We’ll start with News Corp. By weighting, the PowerShares Dynamic Media Portfolio (NYSEARCA: PBS ) has the largest representation, at 5.13% of total net assets. Three positions down, at a weighting of 4.90%, is Viacom’s Class B shares. This is the only ETF available where both stocks are in the top 10 holdings. If you require none to be in the top 10, your range of choice grows exponentially, but that somewhat defeats the purpose of this exercise, so let’s take a closer look at PowerShares Dynamic Media. The portfolio has net assets of $117.2 million that are invested in 30 stocks, including News Corp. and Viacom. As ETF’s go, it’s relatively costly, with a net expense ratio of 0.63% annually. Although both companies are part of the services sector, PowerShares considers 75% of the fund invested in consumer discretionary stocks and 25% in information technology.
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