ETFdb Weekly Watchlist: EWG, XRT, XHB Hinge On German Sentiment, Retail Sales, And Housing Data

by on August 12, 2013 | ETFs Mentioned:

U.S. markets drifted lower last week, as investors turned their attention to looming concerns over the Fed tapering its bond buying program and this quarter’s mixed earnings season. On the corporate front, oil giant Marathon Oil (MRO) missed earnings estimates, while Devon Energy (DVN) and Prudential Financial (PRU) beat analysts’ expectations. 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 How To Take Profits And Cut Losses When Trading ETFs]:

1. MSCI Germany Index Fund (EWG, B+)

Why EWG Will Be In Focus: This fund is designed to measure the performance of the German equity market, and it is home to over $4.5 billion in total assets. EWG will come into focus on Tuesday as data on Germany’s economic sentiment is released. Economic sentiment is expected to come in higher at 40.3, compared to the previously recorded 36.3 figure [see Single Country ETFs: Everything Investors Need To Know].

2. SPDR S&P Retail ETF (XRT, A)Consumer Confidence

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 and Friday as retail sales and preliminary University of Michigan Consumer Sentiment data are reported, respectively. Analysts are expecting a slight decline in sales from 0.4% in the previous month to 0.3% in July. Preliminary consumer sentiment is expected to come in at 85.6, slightly higher than the previously recorded 85.1 figure.

3. SPDR Homebuilders ETF (XHB, A+)

Why XHB Will Be In Focus: With over $2.1 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 Friday as U.S. building permits data is reported. Analysts expect an uptick in building permits from 0.92 million to 0.95 million [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.