Small-Cap, Yen And Crude Oil ETFs To Watch This Week
Economic data continued to disappoint last week amid a strengthening U.S. dollar that weighed on stock prices. The SPDR S&P 500 ETF (NYSE: SPY) will open 2.90 percent off its all-time high on Monday and at an important technical crossroads near the 50-day moving average. This trading zone may prompt a tug of war between the bulls and bears to determine the outcome for the rest of March.
The week ahead features several important economic releases including the monthly FOMC statement on Wednesday, homebuilders data, and industrial production statistics.
Here are the key ETFs to watch for the week of Monday, March 16:
iShares Core S&P Small Cap ETF (NYSE: IJR)
Small-cap stocks were noticeably stronger than large caps last week and are holding up much better on a relative basis. IJR tracks the S&P Small Cap 600 index, which is a broadly diversified basket of companies with market capitalizations less than $1.6 billion.
This ETF is still within striking distance of its 2015 highs and has the potential to be a leading segment on the upside if momentum favors another rally higher. IJR has nearly $16 billion in total assets and charges a minuscule expense ratio of just 0.12 percent.
Guggenheim CurrencyShares Japanese Yen Trust (NYSE: FXY)
Everyone seems to be focused on the euro as the currency trade du jour in March, but the Japanese yen is hovering near a key support level as well. FXY tracks the daily price movement of the yen, which is currently re-testing the $80 level that it hit back in December.
A significant break below that horizontal zone in FXY may provide additional catalyst for a rally in the PowerShares U.S. Dollar Index Bullish Fund. A lower yen will also help fuel currency hedged ETFs such as the WisdomTree Japan Currency Hedged ETF.
United States Oil Fund (NYSE: USO)
Oil prices have been sliding once again and many experts are now predicting that we will see another wave of selling take out the January low. USO tracks the daily price movement of West Texas Intermediate Crude Oil futures contracts and dropped 7.89 percent last week.
A continued glut of supply will certainly weigh on the fundamental picture for oil in the near-term despite many oil producers reducing their operational rig counts. This ETF is likely to see heavy volume and active interest in the week ahead.
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