ETFdb Weekly Watchlist: EWC, EWA, TLT Hinge on Trade Data and FOMC

by on January 6, 2014 | ETFs Mentioned:

Following another holiday-shortened trading week, Wall Street started off the New Year on a sour note. U.S. equity markets did, however, manage to close out the year with broad gains; the Dow Jones Industrial Average logged in its biggest annual rally in 18 years, while the S&P 500 rose 30% in 2013 – its best year since 1997. This week, investors will only see a handful 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. MSCI Canada ETF (EWC, B+)

Why EWC Will Be In Focus: With over $3.3 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 Tuesday as Canada’s trade balance is reported. Analysts expect the trade balance to come in at -0.2 billion versus the previously recorded 0.1 billion. Canada’s Ivery PMI will also be reported on Tuesday; the figure is expected to rise from 53.7 to 55.4 [see Single Country ETFs: Everything Investors Need To Know].

2. MSCI Australia ETF (EWA, B+)Sydney, Australia

Why EWA Will Be In Focus: This fund offers exposure to the Australian equity market, and it is home to nearly $2.0 billion in total assets. EWA will come into focus on Tuesday as Australia’s trade balance is reported. The country’s trade balance is expected to come in at -0.30 billion versus the previously recorded -0.53 billion figure. Australian retail sales will also be reported on Wednesday; sales are expected to come in at 0.5%.

3. 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 Wednesday as the latest FOMC minutes are released. In his last press conference, Bernanke announced the Fed’s plan to begin tapering its bond buying purchases [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.