ETFdb Weekly Watchlist: EWG, XLI, FXI Hinge On Sentiment, Manufacturing, And Industrial Data

by on October 14, 2013 | ETFs Mentioned:

Wall Street got off to a bumpy start last week as budget talks and the looming debt ceiling deadline weighed heavily on U.S. equities. But after the White House announced that Janet Yellen–a staunch proponent of Bernanke’s easy-money policies–would be nominated as the next Federal Reserve Chairman, markets got somewhat of a reprieve. Investors also saw some glimmers of progress being made in Washington after House Republicans unveiled a six-week debt-ceiling increase. Meanwhile, Alcoa kicked off the third quarter earnings season, reporting earnings that exceeded analysts’ expectations. This week, investors will once again see a slew of earnings and economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see The Best (And Worst) Performing ETFs For Every Quarter].

1. MSCI Germany ETF (EWG, B)

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 $5 billion in total assets. EWG will come into focus on Tuesday as the German ZEW Economic Sentiment is released. The indicator is expected to come in slightly lower at 49.2, versus the previously recorded 49.6 figure. In the last recording, however, economic sentiment did manage to beat analyst expectations [see Single Country ETFs: Everything Investors Need To Know].

2. Industrial Select Sector SPDR ETF (XLI, A)Industrial

Why XLI Will Be In Focus: This ETF is one of the most popular on the market, with over $6.6 billion in assets and an average daily volume just under 10 million. XLI seeks to replicate the performance of the U.S. industrial sector and will be in focus this week as the Philly Fed Manufacturing Index is reported on Thursday. Analysts are expecting the index to come in significantly lower at 15.4; the previous recording came in at 22.3, beating estimates of 10.2.

3. China Large-Cap ETF (FXI, A)

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 Thursday as China’s industrial production (y/y) is reported by the National Bureau of Statistics. Analyst are expecting industrial production to increase by 10.1%, slightly slower than the previous 10.4% recording. China’s industrial production data, however, did beat expectations in the previous two recordings.[see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.