Strong economic reports coupled with bullish momentum had the Dow Jones Industrial Average surging into uncharted territory, posting record-breaking all-time highs last week. The Institute for Supply Management non-manufacturing index climbed to 56% in February from 55.2% the month before, a good sign for the services sector. The labor market also posted encouraging data as private sector employment, initial jobless claims, payrolls and unemployment reports all came in better than expected. 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 on Monday as the Bank of Japan is slated to release the minutes from the last monetary policy meeting. There will also be a Japanese Parliament vote on the Bank of Japan’s governor nominations the same day [see also 17 ETFs For Day Traders].
2. SPDR S&P Retail ETF (XRT, A)
Why XRT Will Be In Focus: This ETF tracks an index that is comprised of the roughly 100 U.S.-listed, publicly-traded retail companies, a targeted sub-sector of the consumer discretionary space. Investors should keep a close eye on XRT on Wednesday and Friday as retail sales and consumer sentiment are reported, respectively. Retail sales are expected to come in at 0.5% compared to the previous reading of 0.1%, while preliminary University of Michigan consumer confidence is expected to see an uptick.
3. MSCI New Zealand Investable Market Index Fund (ENZL, A-)
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 only exchange-traded product of its kind. ENZL’s focus will come on Wednesday when the Reserve Bank of New Zealand is expected to announce its rate decision. While the rate is expected to stay the same, investors should pay close attention to any commentary made by the central bank in its press conference [see also How To Pick The Right ETF Every Time].
Disclosure: No positions at time of writing.