Three ETFs To Watch This Week: EWG, FXE, SPY

by on February 27, 2012 | ETFs Mentioned:

This past week was relatively tame as far as important data is concerned, but that does not mean that it was without its high points. The Greek debt deal certainly sparked life in trading as the world formed their own opinions on the second bailout and whether or not it would save the drowning country. All the while, crude oil was surging, as the commodity closed out the week above $109/barrel, its highest point for several weeks. Gold had a strong week as well, though the precious metal surrendered some of its advances during Friday’s trading session. This coming week will be packed with significant data and markets will surely move big in either direction. Below, we outline three funds to keep a close eye on as this busy week unfolds [see also Why No Investor Should Own GLD].

MSCI Germany Index Fund (EWG)

Why EWG Will Be In Focus: This ETF seeks to replicate the performance of the German equity market, which has long been considered Europe’s strongest economy, especially in recent years. But it seems that Germany has been in the news for all the wrong reasons lately, as their President was recently forced to resign amid a nation-wide scandal, leaving the country without a stable leader in a crucial moment. This coming week will put the country on the chopping block as two key data points are slated to be released. Tuesday will see CPI figures for the German economy, while the final day of the month will anxiously await the results of unemployment data. As a result, EWG will be highly active and could be a big mover on the week [see also Why Warren Buffett Hates Gold].

CurrencyShares Euro Currency Trust (FXE)

Why FXE Will Be In Focus: FXE is a widely traded fund that focuses on the EUR/USD exchange rate, one that has been the subject of plenty of volatility as of late. Just a few weeks ago, the euro was sitting below the 1.30 level, but has since climbed to 1.365 as it makes its way to last year’s highs. This coming week will thrust the currency into the limelight as the nation-bloc preps a number of important data points. Aside from all that is going on in Germany, the Euro-zone as a whole will see CPI released, several key confidence barometers, and PPI to close out the week. Trading over 1 million shares daily, FXE is already a strong speculative tool for investors, meaning that a week with such prominent data will only see this fund’s activity increase [see also ETF Insider: Beware Of Lingering Euro Fears].

 SPDR S&P 500 Fund (SPY)

Why SPY Will Be In Focus: The king of ETFs, SPY, has roughly $94 billion in assets and trades hands over 147 million times each day. Saying that this fund will be in focus for the week may seem like something of a cop-out, given that it tracks the S&P 500, but looking at the wide range and variety of data on the horizon, this pick certainly makes intuitive sense. This week will see durable goods orders, GDP, Case-Schiller home prices, ISM manufacturing, and a number of other releases all from the US. With such a broad range of data, SPY will be the best all-encompassing fund to watch on the week, as it will surely be active and a potential big mover for this string of trading days [see also Is SPY Overbought?].

Disclosure: Photo courtesy of Eric Chan. No positions at time of writing.