ETFdb Weekly Watchlist: VGK, XRT, XLI Hinge On Manufacturing, Consumer, And Durable Goods Data

by on September 23, 2013 | ETFs Mentioned:

Wall Street saw U.S. equities rallying to all-time highs last week, after the Federal Reserve announced that it would not begin tapering its bond purchases. Following the FOMC meeting, the Fed stated that “The tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labor market. The [Fed] decided to await more evidence that progress will be sustained before adjusting the pace of its purchases.” Consequently, the Dow Jones Industrial Average soared to 15,676.94, while the S&P 500 rose to 1725.52 – both record closing highs. 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 The Best (And Worst) Performing ETFs For Every Quarter].

1. FTSE Europe ETF (VGK, A+)

Why VGK Will Be In Focus: This ETF offers broad-based exposure to the developed economies of Europe, spreading holdings across more than a dozen markets. Its place in the spotlight will come on Monday when Germany and France release their Flash Manufacturing PMI indexes. Analysts are expecting both German and French manufacturing PMI to come in slightly higher. Investors should keep a close eye on VGK on Monday and Friday, as ECB President Draghi testifies at the quarterly hearing of the Committee on Economic and Monetary Affairs [see Single Country ETFs: Everything Investors Need To Know].

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

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’s Consumer Confidence Index is reported. Analysts are expecting the metric to decrease slightly from 81.5 to 80.7.

3. Industrial Select Sector SPDR (XLI, A)

Why XLI Will Be In Focus: This fund is one of the most popular on the market, with over $6.8 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 core durable goods orders are reported on Wednesday. Analysts are expecting core durable goods orders to rise from -0.8% to 1.2% [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.