Hyman Roth ETFs For Steel M&A Rumors

These are go-go days for the materials sector. OK, it's not the first half of 2008, but the M&A drama is reaching blissful heights. BHP Billiton

got the ball rolling with what has now become hostile bid for Postash

and now investors and traders that love the materials sector have a new rumor to track. On Wednesday, there was plenty of chatter that ArcelorMittal

may offer up to $80 a share for U.S. Steel

, the largest U.S. steel producer. The reality is Mittal, much like the Corleone family in the words of Hyman Roth, is bigger than U.S. Steel, but regardles of movie trivia, there are several ETFs that are worth looking at if this rumor persists. 1) Market Vectors Steel ETF

: Yes, SLX is an obvious choice, but U.S. Steel and Mittal are both found among the ETF's top 10 holdings and that isn't an easy combination to find among materials ETFs. SLX is the big kahuna of pure play steel ETFs. 2) PowerShares Global Steel Portfolio

: Late last year, the Professor profiled PSTL as the "other" steel ETF and it really does not get the attention that SLX does, but PSTL also has exposure to Mittal and U.S. Steel. 3) iShares Dow Jones US Basic Materials ETF

: This one is more of a derivative play on the rumor because IYM offers only slight exposure to U.S. Steel, but it could be be worth a look anyway. 4) SPDR S&P Metals and Mining ETF

: U.S. Steel is the number eight holding in this ETF and with exposure to other big steel names, XME will be in play. 5) iShares S&P Global Materials ETF

: One day, someone will realize what a good ETF MXI is. That day should be now because investors can play both Mittal and BHP Billiton with this fund.