Equity markets got off to a rough start this week as profit-taking pressures emerged following news from the eurozone. Investors kept a close eye on Cyprus this week as the small island nation announced that it is considering plans to impose a tax on bank depositors in order to receive a $13.08 billion bailout. But while many fear that this drastic policy action could spill over to other nations in the currency bloc, namely Spain and Greece, investors are still feeling optimistic given the recent slew of encouraging U.S. data. 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. 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 Tuesday as the Conference Board releases its Consumer Confidence report for the month of March. Analysts are expecting a slight decline from the previous reading of 69.6 [see also 17 ETFs For Day Traders].
2. SPDR Homebuilders ETF (XHB, A+)
Why XHB Will Be In Focus: With over $2.8 billion in total assets under management, this ETF is by far the most popular option for investors looking to add exposure to the homebuilding industry. Its focus will come on Tuesday as U.S. new home sales are reported, and Friday as pending home sales are reported. Both figures are expected to come in lower than previous readings.
3. MSCI Canada Index Fund (EWC, B-)
Why EWC Will Be In Focus: With over $4.6 billion in total assets under management, this ETF is by far the most popular option for investors looking to add exposure to the Canadian equities market. Its focus will come at the end of this week as Canada’s month-to-month GDP figures are released. Analysts expect the nation’s economy to have expanded slightly by 0.1% in March, compared to the previous recording of -0.2% in February [see also How To Pick The Right ETF Every Time].
Disclosure: No positions at time of writing.