ETFdb Weekly Watchlist: FXI, EWG, EWC Hinge on GDP, Sentiment, and BOC

by on January 20, 2014

Wall Street was in for an up and down week as a mixed bag of earnings and economic reports weighed heavily on investors. In earnings news, JP Morgan, Citigroup, and Wells Fargo reported mixed quarterly results, while Bank of America and Morgan Stanley beat the Street’s estimates. Corporate heavyweights GE and Intel, however, missed Wall Street’s projections. In economic news, initial jobless claims dropped 2,000 to 326,000; analysts were expecting new claims to come in at 331,000. Retail sales for December rose 0.2%, versus the expected 0.1%; UoM consumer sentiment, however, came in lower than expected.

This week, investors will only see a handful of economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see The Fed Effect: How Monetary Policy Impacts Your ETFs].

1. China Large-Cap ETF (FXI, B+)

Why FXI Will Be In Focus: This fund 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 Monday as Chinese GDP for the fourth quarter and industrial production are reported. GDP is expected to come in slightly lower at 7.6% versus the previous 7.8% reading. Industrial production is also expected to dip from 10% to 9.8% [see Single Country ETFs: Everything Investors Need To Know].

2. MSCI Germany ETF (EWG, B+)Germany

Why EWG Will Be In Focus: This fund is designed to measure the performance of the German equity market, and it is home to nearly $6.2 billion in total assets. EWG will come into focus on Tuesday and Thursday as the German ZEW Economic Sentiment and flash manufacturing PMI is released. The indicator is expected to come in higher at 63.4, versus the previously recorded 62.0 figure. German flash manufacturing PMI is expected to increase from 54.3 to 54.7.

3. MSCI Canada ETF (EWC, C+)

Why EWC Will Be In Focus: With over $3.1 billion in total assets under management, this ETF is by far the most popular option for investors looking to add exposure to the Canadian equity market. Its focus will come on Wednesday and Thursday when the Bank of Canada’s monetary policy report and the country’s retail sales are released. The BOC is expected to keep rates unchanged at 1.0% while core retail sales are expected to dip from 0.4% to 0.3% [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.