ETFdb Weekly Watchlist: XHB, TLT, SPY Hinge On Housing, Fed, and GDP Data

by on January 27, 2014 | ETFs Mentioned:

Wall Street was in for some up-and-down sessions during the holiday-shortened week, as mixed earnings and economic reports weighed heavily on the markets. On the economic front, data showed China’s manufacturing activity contracting in January, which caused the CBOE Volatility index to spike 11% – its biggest one-day jump since December 11. In earnings news, Microsoft, Verizon, Travelers, Norfolk Southern, and Netflix managed to beat Wall Street’s earnings and revenue estimates, while International Business Machines (IBM) missed both marks. .

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. SPDR Homebuilders ETF (XHB, A+)

Why XHB Will Be In Focus: With over $2.0 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 Monday and Thursday as new home and pending home sales are reported, respectively. Analysts expect new home sales to dip from 465K to 457K, and pending home sales to contract by 0.1% [see Single Country ETFs: Everything Investors Need To Know].

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

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 makes its statement. Investors will be keeping a close eye on the Fed, seeing whether or not it will alter or increase the pace of its tapering.

3. SPDR S&P 500 ETF (SPY, A)

Why SPY Will Be In Focus: This prolific S&P 500 ETF, home to over $158 billion in assets, will come into focus on Thursday as advanced fourth quarter U.S. gross domestic product is reported. Analysts are expecting the economy to grow 3.2% versus the previously recorded 4.1% [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.