The first full week in June has been anything but kind to investors looking to shed some of the losses that have accumulated over the last few weeks. In fact, Friday saw the Dow lose grip on the 12,000 benchmark as equities endured their sixth straight week of losses. The Nasdaq lost all of the gains that it had struggled to make this year, as investors around the world have high doubts about our road back to economic recovery. A wealth of disappointing data as well as fears that a Greek default is inevitable have all led to downward pressure on markets. Commodities also took a hit last week as the dollar has been picking up steam for the first time in some time.
This week will likely keep attention on markets abroad, as some key international data releases will be the highlights of upcoming trading sessions. Meetings of several central banks as well as CPI results from some of the most important economies are on tap this week, as investors will hope to find some indication that the string of sell-offs has been a bit overdone. Ahead of a slew of international data, we highlight three ETFs that could be active this upcoming week:
iShares MSCI Switzerland Index Fund (EWL)
Why EWL Will Be In Focus: This ETF tracks the performance of the Swiss equity market, with big name holdings like Nestle (OTCPK:NSRGY), UBS (UBS) and Credit Suisse (CS) all making an appearance in the top 10 securities. Thus far in 2011, the country of neutrality has been anything but when it comes to performance, as EWL has posted gains just under 8% on the year.
The Swiss National Bank will meet this week to make a policy decision, which can have a major impact on this ETF. Board members will be discussing issues like the soaring strength of the franc, which could put a major damper on exports. With a booming property market, and unemployment at a two and a half year low, one would expect rates to be raised to keep the economy in check, but the franc’s rise, due to the eurozone crisis and sputtering U.S. economy, will likely force the bank to leave rates unchanged until the next meeting.
Global Inflation-Linked Bond Fund (GTIP)
Why GTIP Will Be In Focus: GTIP seeks to replicate a benchmark designed to measure the performance of inflation-linked sovereign debt that is publicly issued in foreign currency. From a currency perspective, the fund breaks down as follows: USD (31.9%), EUR (21.8%) and GBP (18.9%), among a laundry list of other currencies. This week will see CPI data from the U.S., the U.K. and the eurozone, which will have a significant impact on how this young ETF behaves throughout the week. Though there are no predicted blips in these results, any surprise, whether good or bad, will be a major mover for this ETF, which demands that investors of this product closely monitor these results as they come in throughout the week.
IQ Japan Mid Cap ETF (RSUN)
Why RSUN Will Be In Focus: This product is another young ETF, launching at the beginning of June as the first fund to provide exposure exclusively to mid caps in Japan. The nation has been in the limelight this year as a devastating earthquake and tsunamis wreaked havoc on the mainland. With the economy trying to stay on its feet, while simultaneously battling the deflation that has saddled them for nearly two decades, this week's meeting of the Bank of Japan will be a major event for investors in any kind of Japanese equities. The BOJ “is likely to discuss a possible expansion of its lending program aimed at spurring growth in what it sees as high-potential industries” write Tatsuo Ito and Megumi Fujikawa but rates are almost guaranteed to stay at the ultra low rate of 0.1%.
Disclosure: Photo courtesy of Pazit Polak. No positions at time of writing.
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