After a long holiday weekend, U.S. equities got off to a relatively good start last week, though a mixed bag of economic data weighed heavily on the markets. The S&P Case-Shiller 20-City home price index and the Conference Board’s Consumer Confidence Index topped analysts expectations, while an unexpected increase in weekly jobless claims, a decline in consumer spending, and an underwhelming U.S. GDP report led many to change their expectations of monetary policy. Considering the data, many are now speculating that the Fed will continue its massive bond-buying program, at least in the near future. This week, investors will once again see many economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see also The Cheapest ETF for Every Investment Objective]:
1. Dow Jones U.S. Industrial Sector Index Fund (IYJ, A-)
Why IYJ Will Be In Focus: This fund seeks to measure the performance of the industrial sector of the U.S. equity market and is home to nearly $1 billion in assets under management. Investors should keep a close eye on IYJ on Monday as the latest ISM Manufacturing PMI is reported. Analysts are expecting the metric to decrease slightly from 50.7 to 50.6 [see also 17 ETFs For Day Traders].
2. 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 at 0.50% and 375 billion, respectively.
3. S&P 500 VIX Short-Term Futures ETN (VXX, B+)
Why VXX Will Be In Focus: When it comes to measuring the level of uncertainty in the United States, no fund is as prolific as VXX. Its focus will come at the end of the week when the latest U.S. non-farm payrolls data and the unemployment rate are announced on Friday. Investors will be paying close attention to these reports, as the prospects of the Fed scaling back its bond-buying program greatly rely on the health of the labor market. Analysts are expecting non-farm payrolls to come in at 163,000 and the unemployment rate to remain unchanged at 7.5% [see also How To Pick The Right ETF Every Time].
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Disclosure: No positions at time of writing.