Three ETFs To Watch This Week: EWCS, IAU, TVIX

by on March 26, 2012 | ETFs Mentioned:

Last week was relatively slow for equities, as a lack of significant data did not allow for much movement in general markets. Still, disappointing housing data did not do much in the way of paving the road to recovery, as many analysts and experts agree that housing is still a key to calling our economy recovered. The coming week will feature a number of important economic indicators, especially on the home-front. As we exit the month of March, investors are certainly hoping for a lamb-like end to a month that has been relatively kind to portfolios across the board. Below, we outline three ETFs to keep a close eye on as the coming week unfolds [see also Natural Gas and Company In Steep Contango]:

MSCI Canada Small Cap Index Fund (EWCS)

Why EWCS Will Be In Focus: This fund seeks to replicate a benchmark that tracks the performance of small cap companies domiciled in Canada, specifically, the bottom 14% of the Canadian market. This fund was introduced early this year, but has yet to attract significant investor attention. The fund is well diversified and features a one of a kind spin on the Canadian market, so it would not be surprising to see it take off in coming months. The focus on this infant product will occur late in the week when Canada is slated to release GDP, which is expected to drop from 0.4% to 0.1% [see also iShares: The Low Cost ETF Issuer?].

COMEX Gold Trust (IAU)

Why IAU Will Be In Focus: IAU is one of the more popular commodity products in the space, offering exposure to physical bullion with nearly $10 billion in assets. While gold has long been considered a safe haven metal, it has also become something of a speculative trading tool in recent years, as a number of active investors use the commodity to place bets on the market. The coming week will feature a slew of U.S. data and events that will surely give gold a fair amount of volatility. This week will feature a key address from Ben Bernanke, consumer confidence, durable goods, and unemployment claims [see also Why Warren Buffett Hates Gold].

Daily 2x VIX Short-Term ETN (TVIX)

Why TVIX Will Be In Focus: This ETN caused quite an uproar last week as its price sank by monumental amounts, losing more than 50% in just two days. While the exact cause behind these monumental losses is still unconfirmed, it should be noted that the fund was trading at a massive premium prior to its stumble, though it has now fallen back in line with its NAV. Shortly after the debacle, Credit Suisse announced that they would be resuming creations on the fund, a curious timing that makes the previous trades somewhat suspicious. No matter what the reason was for its slide, investors would do well to keep their eyes on this fund for the week to see how it will react after taking a massive blow [see also UBS Launches Leveraged Real Estate ETN (RWXL)].

Disclosure: No positions at time of writing.