ETFdb Weekly Watchlist: VGK, EWU, VXX Hinge On ECB, Fed, and Bank of England

by on May 6, 2013 | ETFs Mentioned:

U.S. equity markets started off with a bang last week, with both the Nasdaq and S&P 500 indexes pushing into uncharted territory. Several disappointing earnings and economics report managed to curb momentum on Wednesday, though equity markets bounced right back after encouraging labor data and a rate cut by the European Central Bank sent stocks soaring. To close out the week, the Dow Jones Industrial Average and S&P 500 ripped higher, pushing above 1500 and 1600, respectively, during Friday’s session. This week, investors will once again see many earnings and economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see also 7 Simple & Cheap ETF Model Portfolio]:

1. FTSE Europe ETF (VGK, A)

Why VGK Will Be In Focus: This ETF offers broad based exposure to the developed economies of Europe, spreading holdings across more than a dozen markets. Its place in the spotlight will come on Monday as eurozone retail sales are released, and ECB President Mario Draghi speaks in Rome. Recently, the central bank cut its primary rate to 0.50% and took a flexible stance on its monetary policy [see also 17 ETFs For Day Traders].

2. MSCI United Kingdom Index Fund (EWU, A-)Bank-of-England

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.

3. S&P 500 VIX Short-Term Futures ETN (VXX, B+)

Why VXX Will Be In Focus: When it comes to measuring the level of uncertainty in the United States, no fund is as prolific as VXX. Its focus will come on Friday as Federal Reserve Chairman Ben Bernanke speaks at the Fed’s 49th Annual Conference on Bank Structure and Competition in Chicago. Investors will be keeping a close eye on any commentary regarding monetary policy from the chairman [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.