ETFdb Weekly Watchlist: XRT, EWJ, FXI Hinge On Consumer, BOJ, And Chinese Manufacturing Data

by on May 28, 2013 | ETFs Mentioned:

It was a roller coaster ride for Wall Street last week, as investors shifted their focus to the latest developments on the Fed front. In his testimony before the Senate’s Joint Economic Committee, Ben Bernanke reported that the central bank will remain on its current bond-buying course, but indicated that the Fed could “take a step down” from the purchases within the time frame of the next few policy-setting meetings if economic data supports the change. Meanwhile, investors welcomed better-than-expected readings on unemployment benefits and new-home sales. 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. SPDR S&P Retail ETF ETF (XRT, A)

Why XHB 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 increase to 70.4 from 68.1 [see also 17 ETFs For Day Traders].

2. MSCI Japan Index Fund (EWJ, A+)Japan

Why EWJ Will Be In Focus: This fund is designed to measure the performance of the Japanese equity market, and it is home to over $12 billion in total assets. It will be important to keep a close eye on EWJ earlier in the week as Bank of Japan Governor Kuroda speaks at the BOJ’s Institute for Monetary and Economic Studies International Conference. Considering Nikkei’s over 7% drop last Thursday, EWJ may once again see some volatile trading as investors digest the governor’s commentary.

3. FTSE China 25 Index Fund (FXI, B)

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 Friday as China’s manufacturing PMI data is released. Analysts are expecting the metric to come in at 49.9, as compared to the previously recorded 50.6 figure  [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.