ETFdb Weekly Watchlist: TLT, XRT, EWC Hinge on Yellen, Retail Data, and Manufacturing Sales

by on February 10, 2014 | ETFs Mentioned:

Wall Street was in for several up-and-down sessions last week, as worse-than-expected economic reports weighed heavily on the markets. In January, the ISM manufacturing PMI came in at 51.3, the lowest figure since May. In labor news, ADP said that 175,000 private sector jobs were created in January, which was below expectations of 193,000; weekly jobless claims, however, posted a larger-than-expected decline of 20,000 to a seasonally adjusted 331,000. The Labor Department also reported that 113,000 jobs were added in January, well below the 189,000 estimate. The unemployment rate fell from 6.7% to 6.6%.

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 and Thursday as Federal Reserve Chairwoman Janet Yellen speaks in Washington. Yellen will be testifying on the Semiannual Monetary Policy Report before the House Financial Services Committee [see Single Country ETFs: Everything Investors Need To Know].

2. SPDR S&P Retail ETF (XRT, A)Retail Sales

Why XRT Will Be In Focus: This ETF tracks an index that is comprised of the roughly 100 U.S.-listed, publicly-traded retail companies, a targeted sub-sector of the consumer discretionary space. Investors should keep a close eye on XRT on Thursday as retail sales are reported, and on Friday as preliminary UoM consumer sentiment is released. Analysts expect retail sales to dip slightly from 0.2% to 0.0%; core retail sales are expected to come in at 0.2% versus the previously recorded 0.7%. Preliminary consumer sentiment is expected to come in at 80.5 versus the previously recorded 81.2.

3. MSCI Canada ETF (EWC, B+)

Why EWC Will Be In Focus: With over $3.0 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 Friday as monthly manufacturing sales are reported. In the previous recording, manufacturing sales came in at 1.0%, beating expectations of a 0.3% reading  [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.