U.S. Tech, Dollar, and Health Care ETFs To Watch This Week

The SPDR S&P 500 ETF (SPY) gained 1.78 percent last week and broke out to new highs as strength in technology and consumer discretionary names led the way.  While momentum appears to be firmly seated in the bulls’ camp, investors may be wary about the current lofty levels of stock prices with additional key earnings announcement on tap.  

Monday will feature quarterly results from market behemoth Apple Inc (AAPL) after the closing bell.  The reaction to Apple’s earnings will likely set the tone for trading in the week ahead along with the FOMC statement on Wednesday.   

Here are the key ETFs to watch for the week of Monday, April 27:

iShares U.S. Technology ETF (IYW)

Searching for an Apple heavy exchange-traded fund to trade next week?  IYW should certainly be on your radar.  This fund carries the heaviest exposure of any ETF to Apple, with nearly 21 percent of the total portfolio dedicated to this single stock.  

IYW contains 141 total holdings and has $2.9 billion in total assets.  This market-cap weighted fund focuses exclusively on U.S.-based electronic, software, hardware, and IT companies.  So far this year, IYW has gained 4.85 percent and recently touched new all-time highs.  

PowerShares U.S. Dollar Bullish Index Fund (UUP)

The U.S. dollar index has been a tremendous catalyst of change over the last 12-months as quantitative easing efforts in Europe and Japan driven foreign currencies lower.  Nevertheless, this benchmark index has recently broken below its 50-day moving average and is sitting at a key level of support.

Further downside for the U.S. dollar this week would likely be driven by concomitant strength in the euro.  A change of this nature could spark additional enthusiasm for international stocks valued in U.S. dollars as well as commodities such as crude oil or gold.  

Health Care Select Sector SPDR (XLV)

Health care stocks also face several important earnings announcements, with Pfizer Inc (PFE), Merck & Co (MRK), and Bristol-Myers Squibb Co (BMY) reporting on Tuesday.  All of these stocks are represented in the top 10 holdings of XLV, which tracks 57 large-cap health care companies in the S&P 500 Index.  

XLV has gained over 9 percent this year as continued momentum in biotech and pharmaceutical stocks help boost returns.  This index will certainly be one to watch this week as further positive data may result in the current rally extending even higher.