ETFs For BHP/Anadarko Rumors

This year has already been busy in terms of M&A activity in the enegy sector and 2011 could be just as busy if not more so with $90 billion in global energy assets up for sale, according to a recent Financial Times article. That sum does not include Anadarko Petroleum

, the Texas-based independent oil and gas producer, that is once again the subject of takeover talks involving BHP Billiton

, the world's largest mining company. The rumor was first reported in September when the Australian newspaper cited unidentified sources as saying Anadarko would be a good backup plan for BHP if the Anglo-Australian mining giant could not acquire Potash Corp.

. Well, we all know how the Potash deal fared and the U.K.'s Daily Mail reported today that BHP may preparing a $90 per share bid for Anadarko, a deal that would be worth $45 billion, more than BHP offered for Potash. Here are some ETF's to play from both the Anadarko and BHP side of this rumored deal. 1) iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

: IEO is the ETF with the largest weight to Anadarko at almost 8% and the fund is a good overall play on enegy M&A. 2) SPDR S&P Oil & Gas Exploration & Production ETF

: This one is a bit of a stretch as Anadarko only accounts for 2.6% of this ETF's weight, but an Anadarko takeover could put some of XOP's smaller, but more heavily weighted constituents in play as well. 3) iShares S&P Global Materials ETF

: Various BHP securities account for about 18% of MXI's weight, making this fund to watch on any BHP acquisition news. 4) BLDRS Asia 50 ADR Index

: Another BHP play as this ETF gives the mining giant a weight of 11.3%, according to ETFChannel.com.