ETFdb Weekly Watchlist: XRT, TLT, EWC Hinge On Retail Data, FOMC, And Canadian GDP

ETF Database

U.S. equities pushed higher last week as Wall Street digested a slew of earnings and economic reports. Caterpillar (CAT)–one of the biggest manufacturers of construction and mining equipment–posted lower-than-expected quarterly results and cut its full year forecast. Microsoft (MSFT), 3M (MMM), and Ford Motor Company (F) beat analyst expectations, while telecom giant AT&T (T) also topped earnings estimates, though revenues fell in line with expectations. In economic news, initial jobless claims fell last week by 12,000, but came in higher than analyst expectations. Durable goods orders rose 3.7% in September, topping analysts’ estimates, while UoM consumer sentiment was revised down to 73.2 from a preliminary reading of 75.2. 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 S&P Retail ETF (XRT, A)

Why XRT Will Be In Focus: This ETF tracks an index that is comprised of the roughly 100 U.S.-listed, publicly-traded retail companies, a targeted sub-sector of the consumer discretionary space. Investors should keep a close eye on XRT on Tuesday as retail sales and Conference Board consumer confidence are reported. Analysts are expecting core retail sales to come in higher at 0.4% versus the previously recorded 0.1% figure; retail sales are forecasted to increase from 0.2% to 0.3%. CB Consumer confidence is expected to drop to 76 from 79.7 [see Single Country ETFs: Everything Investors Need To Know].

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

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Toronto, Canada

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 when the Fed releases its FOMC Statement. While in recent commentary Bernanke emphasized that the central bank will continue its bond-buying program for as long as necessary, investors will still be looking for any hints of tapering.

3. MSCI Canada ETF (EWC, B)

Why EWC Will Be In Focus: With over $3.6 billion in total assets under management, this ETF is by far the most popular option for investors looking to add exposure to the Canadian equities market. Its focus will come on Thursday as Canada’s monthly GDP figures are released. Analysts expect GDP to come in at 0.2% versus the previously recorded 0.6% [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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