After a relatively dull week on Wall Street, the coming trading days will see the heat turned up on markets as a wealth of economic data will be reported from all over the world. But that is not to say that last week did not see any developing trends, as there were a few key takeaways. For starters, both gold and crude oil have been sliding as of late as investors and analysts try to call entry points into each major commodity. Last week also saw news that JP Morgan was on the sour end of a trade executed by the company, losing approximately $2 billion and causing the stock to plummet. Below, we outline three funds to keep a close eye on as the week unfolds [see also 3 ETFs For A Euro Zone Double-Dip].
MSCI Germany Index Fund (EWG)
Why EWG Will Be In Focus: This fund measures the performance of the German equity market with top holdings like Siemens and Deutsche Bank. The fund has more than $2.5 billion in total assets as well as an average daily volume topping 4.3 million. EWG’s focus this week will come primarily on Tuesday when the nation’s GDP and consumer sentiment is released. With the euro zone in shambles and many viewing the Germans as one of the last strong members of the currency bloc, investors will put a heavy weight on this report. Also note that German producer prices are released Friday which will make this ETF active on the final trading session of the week [see also ETFs To Play AAA Europe].
CurrencyShares British Pound Sterling Trust (FXB)
Why FXB Will Be In Focus: FXB measures the GBP/USD exchange rate and bundles it in the form of an ETF. It is home to $104 million in assets and a relatively low daily volume of 21,000. The fund has been active in recent days, as it was just announced that the U.K. has officially fallen into another recession with GDP contraction. FXB will be pushed into the spotlight on Wednesday as the British economy will see the release of CPI data as well as jobless claims, two factors that tend to have a big impact on the pound and potentially this fund. FXB has returned just over 3% thus far year-to-date.
Daily 2x VIX Short-Term ETN (TVIX)
Why TVIX Will Be In Focus: TVIX has made quite a splash this year, especially after it lost 50% of its value in just two days. For the year, this fund is down over 78%, as generally positive equities in the beginning of the year dug a big hole for the ETN. With a 2X leverage on VIX futures, this fund is one of the most volatile and risky in the space. But with that major risk comes the potential for major reward. This week will feature major economic indicators from all over the world with the U.S. also detailing CPI results and retail sales figures. Look for TVIX to remain active through out the week, especially if euro zone fears heat up [see also How The VIX ETN Lost 50% In 48 Hours].
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Disclosure: No positions at time of writing.