ETFdb Weekly Watchlist: XHB, FXI, EWG Hinge On Housing, Manufacturing, And Business Climate Data

by on July 22, 2013 | ETFs Mentioned:

Wall Street endured several up and down sessions last week, as investors digested a slew of mixed earnings and economic reports last week. In economic news, retail sales greatly missed the mark in June, while weekly jobless claims, business activity in the Mid-Atlantic region and industrial production came in better-than-expected. On the earnings front, beverage giant Coca-Cola (KO) reported weaker-than-expected sales, while Goldman Sachs (GS) and Morgan Stanley (MS) exceeded both earnings and revenue forecasts. Tech-giants Google (GOOG) and Microsoft (MSFT), however, posted dismal quarterly results. This week, investors will once again see a slew of earnings and economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see 25 Wild ETF Charts From 1H 2013]:

1. SPDR Homebuilders ETF (XHB, A+)

Why XHB Will Be In Focus: With over $2.4 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 Monday as U.S. existing home sales are reported, and Wednesday as new home sales are reported. Analysts expect an uptick in both new and existing home sales; this comes after last week’s disappointing building permits report [see Single Country ETFs: Everything Investors Need To Know].

2. FTSE China 25 Index Fund (FXI, B)China Flash Manufacturing

Why FXI Will Be In Focus: This ETF measures the Chinese stock market with a large cap spin, making it one of the more popular emerging market funds. Its place in the spotlight will come on Wednesday as China’s HSBC Flash Manufacturing PMI data is released. In the previous recording, manufacturing PMI came in at 48.3 versus the expected 49.3. Analyst are expecting the metric to come in slightly higher at 48.6 (a reading below 50 indicates industry contraction).

3. MSCI Germany Index Fund (EWG, A)

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 $4.3 billion in total assets. EWG will come into focus on Thursday as data on Germany’s business climate is released. The indicator, compiled by the Ifo Institute for Economic Research, is expected to come in higher at 106.3, compared to the previously recorded 105.9 figure [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.