ETFs You're Not Thinking Of For Energy M&A

In case you missed it, the energy sector has been the most active in 2010 in terms of mergers and acquisitions activity. There have been a total of 561 transactions adding up to $120 billion, according to Bloomberg News. Don't expect that pace to slow either. Chinese and Indian energy producers are battling each other for energy assets and there are willing sellers all over the globe. Heck, BP BP, the second-largest European oil company, may not be a "willing" seller, but it does want to part with $30 billion in assets. Simply put, energy M&A is going to remain robust, so why not have a look at some ETFs that are plays on this trend. Better yet, let's look at a group that doesn't inlcude the usual suspects like the Energy Select Sector SPDR XLE. 1) Global X China Energy ETF CHIE: CHIE is obviously a way to play some of the buyers in the energy M&A game as Cnooc CEO, Sinopec SNP and PetroChina PTR make up the ETF's top three holdings. That's China's largest offshore driller, Asia's biggest refiner and China's biggest oil company for you and it's hard to find news about major energy assets that doesn't involve one member of this trio being rumored as a suitor. Yanzhou Coal YZC, acquisitive in its own right, is also found in the top-10 of CHIE's holdings. 2) WisdomTree International Energy ETF DKA: Buyers and sellers here. Oddly enough, DKA was hampered by a big allocation to BP following the Gulf of Mexico oil spill. Now the stock cannot be found among the ETF's holdings. Total TOT and Royal Dutch Shell RDS are sitting on a combined $31 billion in cash and Total has already done more deals (10) than any other integrated oil name this year. Total may slow down its buying, but it has also sold $4 billion in assets. Shell will probably look for more gas assets and is selling some blocks in Brazil. Beyond those names, DKA has exposure to a good number of smaller Australian energy players that have been rumored to be takeover targets. 3) PowerShares Dynamic Oil & Gas Services ETF PXJ: PXJ is a kissing cousin to the more heavily traded Oil Services HOLDRs OIH and both ETFs count Schlumberger SLB and National Oilwell Varco NOV among their top-10 holdings. Those are two of the more acquisitive oil services firms out there making PXJ worth a look. Beat the market consistently by receiving real-time trade alerts from the ETF Professor!