Investors were finally able to focus on Wall Street last week, after Senate leaders managed to reach a last minute deal on Wednesday to reopen the government and suspend the debt ceiling. On the earnings front, Goldman Sachs (GS) reported disappointing Q3 results, missing revenue estimates, while JP Morgan (JPM) reported a loss in the third quarter, after the company took on nearly $9.2 billion in legal expenses. Morgan Stanley (MS), Google (GOOG), and General Electric (GE), however, all reported better than expected earnings. This week, investors will once again see a slew of earnings and 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 $1.8 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 Monday and Thursday as existing and new home sales are reported, respectively. Analysts expect existing home sales to dip slightly from the previously recorded 5.48 million to 5.31 million. New home sales are expected to rise from 421,000 to 427,000 [see Single Country ETFs: Everything Investors Need To Know].2. China Large-Cap ETF (FXI, B-)
Why FXI Will Be In Focus: This fund measures the Chinese stock market with a large cap spin, making it one of the more popular emerging market funds. Its place in the spotlight will come on Thursday as the country’s HSBC Flash Manufacturing PMI is reported. Analysts expect manufacturing PMI to increase slightly from the previously recorded 50.2 to 50.5. A reading above 50 indicates industry expansion.
3. FTSE Europe ETF (VGK, A+)
Why VGK Will Be In Focus: This ETF offers broad-based exposure to the developed economies of Europe, spreading holdings across more than a dozen markets. Its place in the spotlight will come on Thursday when Germany and France release their Flash Manufacturing PMI indexes. Analysts are expecting both German and French manufacturing PMI to increase slightly, coming in at 51.6 and 50.3, respectively [see also How To Pick The Right ETF Every Time].
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Disclosure: No positions at time of writing.
- Morgan Stanley