ETFdb Weekly Watchlist: TLT Awaits FOMC; XHB, XLI Hinge on Housing and Philly Fed

ETF Database

Wall Street finally welcomed back bullish momentum last week, as easing tensions in Syria and relatively positive economic news pushed major U.S. equity indexes higher. In China, exports were reported to have risen 7.2% in August from a year prior; the country’s industrial output also rose 10.4% in August from a year earlier. On the labor front, initial jobless claims fell to the lowest level since 2006 at 292,000. Meanwhile,  the Dow announced that Alcoa, Bank of America, and HP will be removed from the index to make room for Nike, Goldman Sachs, and Visa. This week, investors will once again see a slew of economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see The Best (And Worst) Performing ETFs For Every Quarter].

1. SPDR Homebuilders ETF (XHB, A+)

Why XHB Will Be In Focus: With over $2.1 billion in total assets under management, this ETF is by far the most popular option for investors looking to add exposure to the homebuilding industry. Its focus will come on Wednesday and Thursday as building permits and existing homes sales are reported, respectively. Analysts expect building permits to remain unchanged at 0.95 million, while existing home sales are expected to dip slightly form the previously recorded 5.39 million to 5.27 million [see Single Country ETFs: Everything Investors Need To Know].

2. Barclays 20 Year Treasury Bond Fund (TLT, B)

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Why TLT Will Be In Focus:  This fund is designed to measure the performance of U.S. Treasury securities that have a remaining maturity of at least 20 years. TLT will come into focus on Wednesday as the Federal Open Market Committee releases its economic projections and statement. The FOMC will also hold a press conference following the statement release.

3. Industrial Select Sector SPDR (XLI, A)

Why XLI Will Be In Focus: This   fund is one of the most popular on the market, with over $6.2 billion in assets and an average daily volume just over 9 million. XLI seeks to replicate the performance of the U.S. industrial sector and will be in focus this week as the Philly Fed Manufacturing Index is reported on Friday. Analysts are expecting the index to rise to 10.5 from the previously recorded 9.3 figure [see also How To Pick The Right ETF Every Time].

Follow me on Twitter @DPylypczak.

Disclosure: No positions at time of writing.

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