Are GM and Ford Wrecking Your ETF?

Despite the fact that the managers of the Big 3 auto makers and their unions are in Washington begging for a bailout, the stock prices for General Motors(GM) and Ford (F) both continued their long declines.

How are your ETFs affected?

A tool that we like to use is on’s website.  Pull up a quote and then click on “Holders” to see which funds have large exposure to the stock.  Click on ETFs to screen out mutual funds.

Checking GM first shows that PowerShares FTSE RAFI Consumer Goods Sector Portfolio (PRFG) still has 3.5% of its portfolio concentrated in America’s largest automaker.  PRFG is fundamentally weighted and is rebalanced and reconstituted annually.

PRFG also has 6.3% of its portfolio allocated to Ford.  Other ETFs with a material exposure to Ford include RevenueShares – Large Cap (RWL) and  Rydex S&P Equal Weight CD (RCD).

For a complete listing of Consumer Discretionary ETFs, see the ETF Directory.