ETFdb Weekly Watchlist: TLT, EWC, EWU Hinge on Yellen, BOC, and BOE

by on December 2, 2013 | ETFs Mentioned:

Trading was relatively subdued last week, with U.S. markets closed on Thanksgiving day. Investors did, however, witness the Nasdaq Composite Index breach 4,000 for the first time in 13 years, while the Dow Jones Industrial Average traded above the 16,000 level, a record high logged earlier in November.  On the economic front, home building permits rose 6.2% in October, the highest level in five years. The S&P/Case-Shiller 20 City home-price index rose 13.3% on the year for September. Meanwhile, the Conference Board’s consumer-confidence index fell unexpectedly to 70.4 in November from October’s 71.2 reading; analysts were expecting the index to rise to 73.0

This week, investors will once again see a slew of economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see The Fed Effect: How Monetary Policy Impacts Your ETFs].

1. Barclays 20 Year Treasury Bond Fund (TLT, B)

Why TLT Will Be In Focus: This fund is designed to measure the performance of U.S. Treasury securities that have a remaining maturity of at least 20 years. TLT will come into focus on Tuesday as the U.S. Senate votes to pass or reject the nomination of Janet Yellen as the next Federal Reserve Chairperson. The Senate Banking Committee voted to approve Yellen’s nomination earlier in November [see Single Country ETFs: Everything Investors Need To Know].

2. MSCI Canada ETF (EWC, B+)Yellen

Why EWC Will Be In Focus: With over $3.6 billion in total assets under management, this ETF is by far the most popular option for investors looking to add exposure to the Canadian equities market. Its focus will come on Wednesday as Canada’s trade balance is reported. The Bank of Canada will also hold its rate statement, which is expected to remain unchanged at 1.00%.

3. MSCI United Kingdom ETF (EWU, A-)

Why EWU Will Be In Focus: This ETF tracks an index that is comprised of roughly 100 securities, and it 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 [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.