3 ETFs to Watch This Week
01/15/2013 7:00 am EST
As earnings season gets going in earnest, volatility and volume should ratchet up, and Daniela Pylypczak of ETFdb.com lists three ETFs that could see significant action.
The second week of the new year was a rather quiet one on Wall Street, as trading volumes remained relatively low. Lack of optimism among investors coupled with wariness ahead of the start of the fourth quarter’s earnings season remained the main focus, though several economic reports came in better than expected.
Despite the initial outlook for this earnings season being rather dreary, analysts predict that the lowered expectations found among investors leave room for companies to post positive surprises, even if results do not meet last year’s double-digit figures. This week, investors will once again see a number of earnings and economic reports from around the world. Below, we outline three ETFs that should see a fair amount of activity during the week ahead:
1. Market Vectors Retail ETF (RTH)
Why RTH Will Be in Focus: This ETF tracks an index that is comprised of the 25 largest US-listed, publicly-traded retail companies, a targeted sub-sector of the consumer discretionary space. Top holdings include the behemoth Wal-Mart, online retail giant Amazon, and Home Depot. Investors should keep a close eye on RTH on Tuesday, as US Advance Retail Sales for the month of December will be reported. The last reading came in below expectations at 0.3% for November, and analysts expect this figure to contract to 0.2% for December.
2. FTSE China 25 Index Fund (FXI)
Why FXI Will Be in Focus: This ETF measures the Chinese stock market with a large-cap spin, making it one of the more popular emerging market funds. FXI has over $8 billion in assets, an average daily volume topping 16 million and is easily the most popular fund dedicated to China. Its place in the spotlight will come at the end of the week when China releases its latest fourth quarter GDP figures. Analysts are expecting GDP (YoY) for the fourth quarter to come in at 7.8%, compared to the previously recorded 7.4%.
3. Consumer Discretionary Select Sector SPDR ETF (XLY)
Why XLY Will Be in Focus: This ETF is by far the largest and most popular consumer discretionary fund on the market, with total assets topping $4 billion and an average daily trading volume of six million. Watch this fund on Friday as the University of Michigan Confidence report is released. Analysts are expecting for this figure to come in at 75.1 for the month of January, slightly lower than the previously recorded 72.9.
By Daniela Pylypczak of ETFdb.com