ETFdb Weekly Watchlist: FXI, EWU, EU Hinge On Manufacturing Data, England and ECB Rate Decisions

by on July 1, 2013 | ETFs Mentioned:

A slew of better-than-expected economic reports helped bolster U.S. equities last week, though investors still kept their eye on commentary from Fed officials. Housing, consumer confidence, durable goods and employment data all topped analysts’ expectations. Meanwhile, U.S. GDP was reported to have grown by only 1.8% during the first quarter of 2013, revised downward from the previous reading of 2.4%. The revision, however, led many investors to believe the central bank will delay tapering even further. 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. FTSE China 25 Index Fund (FXI, A)

Why FXI Will Be In Focus: This ETF 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 China’s manufacturing PMI data is released. In the previous recording, manufacturing PMI came in at 50.8 versus the expected 49.9. Last week, however, HSBC Flash Manufacturing PMI showed China’s crucial manufacturing sector shrinking at a faster rate in June [see Single Country ETFs: Everything Investors Need To Know].

2. MSCI United Kingdom Index Fund (EWU, A-)ECB

Why EWU Will Be In Focus: This ETF tracks an index that is designed to measure the overall performance of the British equity market. Investors should keep a close eye on EWU on Thursday as the Bank of England announces its rate decision and its asset purchase target. Both the rate and target are expected to remain unchanged at 0.50% and 375 billion, respectively.

3. Euro Debt Fund (EU, A-)

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 Thursday as the European Central announces its minimum bid rate. The rate is expected to remain unchanged at 0.50%, but EU could still see some activity depending on the commentary at the ECB press conference [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.