Tax inversion mergers are all the rage among U.S. corporations now. They are taking over foreign companies and then domiciling in the foreign country to avoid U.S. corporate taxes, which run as high as 35 percent.

So how can you benefit from this trend as an investor? The basic rule to keep in mind is that in mergers, the shares of the company being acquired generally rise, as the acquirer generally pays a premium above the current stock price.

And the shares of the acquirer usually fall, as it's often weakening its balance sheet or diluting its shareholders to make the purchase. But in the case of tax inversion deals, the shares might rise thanks to the tax benefit.

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The Wall Street Journal lists three ways to play the inversion trend.

1. Sector-focused funds. Much of the inversion activity has taken place in the healthcare sector. So you can buy a mutual fund or exchange-traded fund focusing on that industry.

2. Merger arbitrage funds. These are mutual funds that buy and sell stocks to specifically profit from mergers by betting on the outcome of announced transactions.

3. "Going a la carte." You can buy the shares of potential targets and of potential acquirers that would benefit from a deal.

President Obama wants to ban tax inversion mergers, but some American CEOs think that's a bad idea.

"The current U.S. tax system puts U.S. companies at a disadvantage," Eli Lilly CEO John Lechleiter tells CNBC. "Some of these companies acting on inversions . . . are simply trying to level the playing field. If we've got a concern about inversions, we need to tackle our tax code."

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