Last week saw equities continue their surge, as the Dow made a case to hold well above the 13,000 level and the S&P was able to cross the 1,400 benchmark. While a number of investors are cheering on the rally, the rapid rise has many worried that some kind of pullback is overdue and that stocks may be unable to maintain current levels. But we have heard calls for a pullback all year long and markets have simply continued to charge onward. Looking ahead to the coming week, there will be several key economic indicators released all over the world, but for all intents and purposes, it will be a relatively quiet period com.pared to weeks past [see also Gold Hits Resistance, Time To Worry?].
Below, we outline three ETFs to keep a close eye on as the week unfolds:
MSCI New Zealand Investable Market Index Fund (ENZL)
Why ENZL Will Be In Focus: This ETF, which launched in late 2010, is designed to reflect the performance of the New Zealand equity market, making it the exchange traded product of its kind. The fund, which focuses on mid cap companies, has returned over 15% for its investors this year while paying out a dividend yield of 4.6%. ENZL’s focus will come on Wednesday as the nation releases GDP results from its most recent quarter. Analysts are calling for GDP to fall to 0.6% from 0.8%, which does not bode well for the performance of ENZL [see also 3 ETFs For Long-Term Energy Trends].
CurrencyShares British Pound Sterling Trust (FXB)
Why FXB Will Be In Focus: FXB measures the exchange rate between the British pound and the U.S. dollar. The fund, despite being nearly six years old, is relatively small, with just $85 million in total assets and an ADV of just under 30,000 for the trailing month. This ETF will be important to watch in the latter half of the week, as Wednesday will see Bank of England minutes and Thursday will see retail figures from the British. Wednesday will likely be the biggest mover for this fund, as any plans or commentary fro the central bank tends to have a more dramatic impact on currency rather than equities [see also Three ETFs Trading At A Huge Premium To NAV (And Three Alternatives)].
SPDR Homebuilders ETF (XHB)
Why XHB Will Be In Focus: This ETF seeks to replicate a benchmark that measures the domestic home building industry. Many analysts feel that we cannot call ourselves recovered or even in the process of recovering until housing markets make their way back up, as this has been a major issue since the market bottom in late 2008. This week will see the new U.S. home sales report, as analysts predict that figure to jump from 321,000 to 326,000. Note that this report has missed the last two months, so it will be important to keep a close eye on this ETF as the release it detailed.
Disclosure: No positions at time of writing.