ETFdb Weekly Watchlist: XHB, TLT, XLI Hinge On Housing, Durable Goods And Bernanke

by on May 20, 2013 | ETFs Mentioned:

Last week, Wall Street digested a slew of mixed economic data, which had equities struggling to hang on to bullish momentum. Initial jobless claims and benefits, housing starts, industrial production and manufacturing activity all came in below expectations; however, building permits, small business optimism, retail sales, and consumer sentiment did manage to top analysts’ expectations. Investors also paid close attention to Federal Reserve Bank of San Francisco President John Williams comments on Thursday, which indicated that he is open to the central bank scaling back its bond-buying program in coming months. 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. SPDR Homebuilders ETF (XHB, A+)

Why XHB Will Be In Focus: With over $2.9 billion in total assets under management, this ETF is by far the most popular option for investors looking to add exposure to the homebuilding industry. Its focus will come on Wednesday as U.S. existing home sales are reported, and Friday as new home sales are reported. Analysts expect an uptick in both new and existing home sales; this comes after last week’s better-than-expected building permits data as well as a disappointing housing starts report [see also 17 ETFs For Day Traders].

2. Barclays 20 Year Treasury Bond Fund (TLT)

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 Wednesday as the FOMC minutes from the last meeting are released. Investors will also be keeping a close eye on Bernanke’s testimony on the Economic Outlook and Monetary Policy before the Joint Economic Committee in Washington.

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

Why XLI Will Be In Focus: This fund seeks to replicate the performance of the U.S. industrial sector and will be in focus this week as U.S. durable goods for the month of April are slated to come out on Friday. Analysts expect orders to increase by 0.6%. In the previous recording, the figure came in well below expectations at -1.4% versus the forecasted 0.5% uptick [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.