Three ETFs To Watch This Week: PSCC, USO, VGK

by on December 12, 2011 | ETFs Mentioned:

This week was yet another volatile one as investors weighed in their opinions on the euro zone and how its actions would shape the global economy. Though the EU eventually came through with a deal, not all countries agreed, with the U.K. outright opting out, creating some concern that the deal did not go far enough to fix the issues that are afflicting the nation-bloc. Equities started off the week strong but eventually suffered major losses on Thursday, as it seemed that the euro deal had a chance of failing altogether. Markets turned things around on Friday, but the coming week will tell a lot about how Europe will move forward from here. Below, we outline three ETFs to keep an eye on as the coming week unfolds [see also Dividend ETF Gets A Makeover].

S&P SmallCap Consumer Staples Portfolio (PSCC)

Why PSCC Will Be In Focus: PSCC tracks an index which is comprised of common stocks of U.S. consumer staples companies that are principally engaged in the businesses of providing consumer goods and services. This week will feature a key earnings report from one of its core holdings, Diamond Foods (DMND). The company makes up over 9.4% of the ETF and will report its most recent quarter’s earnings on Tuesday [try our Free ETF Stock Exposure Tool]. Analysts are predicting the company to haul in EPS of $0.72 with revenues topping $275 million. On Friday, the stock surged more than 30% on news that an investigation into the company would be concluding quickly and likely have little lasting effects. Investors should note that Diamond hasn’t missed their estimates in over a year, which bodes well for PSCC and its upcoming week [see also 2011: A Year Of ETF Firsts].

United States Oil Fund (USO)

Why USO Will Be In Focus: Crude oil has been in the spotlight for the past few weeks as the commodity has featured a massive rise over the past few weeks. USO is one of the most popular ways to gain exposure to WTI contracts, as the fund trades over 12 million shares each day and has roughly $1.5 billion in assets. Last week saw crude experience a heavy amount of volatility as its price dipped from as high as $102/barrel, all the way down below $98. Most of its losses were tied to shaky equities, but now that the euro zone has come up with a budget deal, crude may be making its way back up on the week. USO will be very active over the coming week, as volatile equities will have a  major impact on this fund [see also 25 Ways To Invest In Crude Oil].

European ETF (VGK)

Why VGK Will Be In Focus: This ETF is another member of the billion dollar club, with over $2.6 billion in AUM. From a country perspective, this fund focuses on the U.K. (31%), France (15%), and Germany (14%) among others. Europe continues to be the focus of nearly every trading day, so much so that their troubles have overshadowed some robust U.S. data in recent weeks. This week will not only feature a reaction to Friday’s deal, but also U.K. GDP as well as euro zone CPI, making VGK an important one to watch as each trading day unfolds [see also UBS Launches Risk On / Risk Off ETNs].

Disclosure: No positions at time of writing.