3 ETFs To Watch This Week: GLD, EWUS, XLI

by on August 20, 2012 | ETFs Mentioned:

It was another slow week on Wall Street, as markets struggled to pick up any momentum. Mixed economic data from across the globe had stocks straddling the flat line for the majority of the week. Last week’s lackluster GDP reports from Japan and Germany added to the list of growing global economic concerns. And on the homefront, investors welcomed the uptick in U.S. retail sales, but were disappointed with the slowdown in housing starts and manufacturing activity, as well as a rise in weekly jobless claims. Markets did however respond to German Chancellor Angela Merkel comments regarding her commitment to do whatever is necessary to keep the currency bloc together. This week, investors will see a number of economic reports from around the globe, which will hopefully restore some momentum to the markets. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see also 3 Surprising A+ ETFs].

1. SPDR Gold Trust (GLD)

Why GLD Will Be in Focus: This physically-backed ETF offers exposure to the spot price of gold bullion. Gold is typically active on its own, but with FOMC minutes on Wednesday, the precious metal is sure to have an active week. Fed statements typically have a massive effect on gold, especially if there is any sort of mention of asset-purchasing or any other event that would spark inflation. GLD may be in for a wild trading day as investors either increase their risk appetites or flee for the safe havens, depending on how markets react to the Fed’s outlook and commentary [see also George Soros Eats Own Words, Doubles Down On GLD].

2. MSCI United Kingdom Small Cap Index Fund (EWUS)

Why EWUS Will Be In Focus: EWUS aims to measure the equity securities performance of small-cap companies whose market capitalization represents the bottom 14% of the British securities market. Since the fund provides “pure” play exposure to the U.K’.s local economy, it will be important to keep a close eye on EWUS on Friday as the United Kingdom’s GDP is reported; analysts expect to see a -0.5% contraction in comparison to the previously reported -0.7% figure.

3. Industrial Select Sector SPDR Fund (XLI)

Why XLI Will Be in Focus: This fund is one of the most popular in the world, with over $3 billion in assets and an average daily volume just over 17 million. XLI seeks to replicate the performance of the U.S. industrial sector and will be in focus this week as U.S. durable goods are slated to come out on Thursday. The last report indicated an increase in demand for durable goods in the month of June; analysts are expecting another increase in July [see also 17 ETFs For Day Traders].

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Disclosure: No positions at time of writing.