Equity markets were in for some choppy trading sessions last week as investors digested the latest developments in Europe and a mixed bag of economic reports. But after Cyprus reached a last minute deal and reopened banks at the end of last week, investors finally regained their confidence, pushing equity markets to record levels once again. To finish off the quarter, the Dow Jones Industrial Average logged in its best quarter in 15 years, and the S&P 500 broke a six-year old high to mark a new all-time record. This week, investors will once again see a slew of economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see also 7 Simple & Cheap ETF Model Portfolio]:
1. MSCI Japan Index Fund (EWJ, A)
Why EWJ Will Be In Focus: This fund is designed to measure the performance of the Japanese equity market, and it is home to over $6.4 billion in total assets. It will be important to keep a close eye on EWJ Monday and Thursday as the Tankan Large Manufacturers Outlook and the Bank of Japan’s Decision rate are announced. Both manufacturing and non-manufacturing outlooks are expected to come in slightly higher for the first quarter, while the bank rate is expected to remain unchanged [see also 17 ETFs For Day Traders].
2. Industrial Select Sector SPDR ETF (XLI, A)
Why XLI Will Be In Focus: This fund is one of the most popular on the market, with over $4.6 billion in assets and an average daily volume just over 9 million. XLI seeks to replicate the performance of the U.S. industrial sector and will be in focus this week as ISM manufacturing data for the month of March hits the street on Monday. Analysts are expecting ISM data to remain unchanged from the previous reading of 54.2.
3. MSCI United Kingdom Index Fund (EWU, A-)
Why EWU Will Be In Focus: This ETF tracks an index that is comprised of roughly 100 securities, and it is designed to measure the overall performance of the British equity market. Investors should keep a close eye on EWU on Thursday as the Bank of England announces its rate decision and its asset purchase target. Both the rate and target are expected to remain unchanged [see also How To Pick The Right ETF Every Time].
Disclosure: No positions at time of writing.