ETFdb Weekly Watchlist: DXJ, EU, XRT Hinge On BoJ, German Court Ruling, And Consumer Data

by on June 10, 2013 | ETFs Mentioned:

Wall Street was in for some volatile trading sessions last week, as a mixed bag of economic reports weighed heavily on the markets. The Institute for Supply Management’s index of manufacturing activity unexpectedly contracted in May, marking its first decline in six months, while the ADP private sector jobs report grossly missed analyst expectations. Non-farm payrolls did, however, surpass expectations, while the unemployment rate rose slightly to a disappointing 7.6% reading for May. 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. Japan Hedged Equity Fund (DXJ, B-)

Why DXJ Will Be In Focus: This fund is designed to provide exposure to equity securities in Japan, while at the same time hedging exposure to fluctuations between the value of the U.S. dollar and and the Japanese yen. Investors should keep a close eye on DXJ as the Bank of Japan releases its monetary policy statement and holds its press conference on Monday and Tuesday, respectively [see also 17 ETFs For Day Traders].

2. Euro Debt Fund (EU, A-)ECB

Why EU Will Be In Focus: This fund offers a way for investors to gain pure play exposure to European debt markets. Investors should keep a close eye on EU on Tuesday and Wednesday, as the German Federal Constitutional Court is slated to announce its ruling on the constitutionality of the European Central Bank’s Outright Monetary Transactions policy.

3. SPDR S&P Retail ETF (XRT, A)

Why XRT 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 as retail sales and preliminary UoM consumer sentiment are reported on Thursday and Friday, respectively. Analysts expect both figures to come in slightly higher, with retail sales increasing 0.4% and sentiment coming in at 84.9 [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.