Stimulus hopes drove trading acitivty throughout much of last week until the FOMC finally delivered; equity markets around the globe reacted with great optimism on last Thursday to the Fed’s announcement of QE3. With policymakers now pledging their full support on both sides of the Atlantic ocean, markets have been injected with confidence that should help to keep benchmarks afloat despite looming uncertainties still plaguing the global recovery. This week, investors will once again see a number of economic reports around the globe, which will hopefully bring more momentum to the markets. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see also 7 Simple & Cheap ETF Model Portfolio]:
1. MSCI Germany Index Fund (EWG)
Why EWG Will Be in Focus: This fund is designed to measure the performance of the German equity market, and it is home to over $3.3 billion in total assets. EWG will come into focus on Tuesday as data on Germany’s economic sentiment is released. Last month, the analysts’ reading was at -25.5, but the recent Euro Zone debt developments may put this number slightly higher. If the country is able to hit its marks, then look for EWG to see a nice boost. But a negative report or further issues involving the debt crisis could put this fund in the gutter [see also 17 ETFs For Day Traders].2. MSCI New Zealand Investable Market Index Fund (ENZL)
Why ENZL Will Be In Focus: This ETF, which launched in late 2010, is designed to reflect the performance of the New Zealand equity market, making it the only exchange traded product of its kind. The fund invests in only 25 individual securities, with a heavy tilt towards communication, industrials, and basic materials stocks. ENZL’s focus will come on Wednesday as the nation releases GDP results from its most recent quarter.
3. MSCI Japan Index Fund (EWJ)
Why EWJ Will Be In Focus: This fund seeks to replicate the performance of the Japanese equity market and is home to over $5 billion in total assets. Top holdings include household names like Toyota, Honda, and Canon. With the Japanese economy struggling in recent years, this ETF has had trouble getting going, as it has lost more than 26% over the trailing five year period. Its focus this week will come on Wednesday and Thursday when the central bank rate and a key economic report will be released, giving a good indicator of how the Japanese economy will fare moving forward [see also Asia-Centric ETFdb Portfolio].
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Disclosure: No positions at time of writing.
- equity markets