Last week was chock-full of economic reports from around the globe, leading to some choppy trading sessions on Wall Street. Spain once again took center stage, as circulating rumors forced Spanish Prime Minister Mariano Rajoy to emphasize that his country’s request for a bailout, which would unleash a round of Spanish bond-buying by the European Central bank, is not one that is imminent. Sour economic reports from the eurozone and China also weighed heavily on the markets, while better-than-expected U.S. data helped buoy the markets. This week, investors will once again see a number of economic reports around the world, which will hopefully bring confidence back into the markets. Below, we outline three ETFs that should see a fair amount of activity during the holiday-shortened week ahead [see also 7 Simple & Cheap ETF Model Portfolio]:
1. FTSE China 25 Index Fund (FXI)
Why FXI Will Be in Focus: This ETF measures the Chinese stock market with a large cap spin, making it one of the more popular emerging market funds. FXI has over $4 billion in assets, an average daily volume topping 13 million and is easily the most popular fund dedicated to China. Its place in the spotlight will come several times throughout the week as China is set to release some important economic data. Sunday night and Monday morning will see both CPI results as well as new yuan loans, two reports that will have a big impact on this fund, especially given the fact that so many investors put heavy weight into China’s massive consumer segment. On Thursday, China will report its GDP, which many believe will show yet another slowdown for the economy [see also 17 ETFs For Day Traders].2. Market Vectors Retail ETF (RTH)
Why RTH Will Be In Focus: This ETF tracks an index that is comprised of the 25 largest U.S.-listed, publicly-traded retail companies, a targeted sub-sector of the consumer discretionary space. Top holdings include the behemoth Wal-Mart, online retail giant Amazon and Home Depot. Investors should keep a close eye on RTH on Monday, as U.S. Advance Retail Sales for the month of September will be reported. The last reading came in at 0.9% for August.
3. 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 $3.5 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 -18.2, a 7.3 increase for the month of September . 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 How To Pick The Right ETF Every Time].
Follow me on Twitter @DPylypczak
Disclosure: No positions at time of writing.
- Investment & Company Information