Home Construction, Treasury And Automobile ETFs To Watch This Week
The upcoming week will mark the end of the quarter and mid-way point of the year, which may see increased trading volume as portfolio managers look to position themselves for success the second half of 2015.
The broad-based SPDR S&P 500 ETF (NYSE: SPY) is sitting on a tepid gain of just 3.04 percent so far this year as sector repositioning continues to churn the major indices sideways.
Key economic events to watch will include: pending home case, Case-Shiller home price index, motor vehicle sales and non-farm payrolls.
Here are the key ETFs to watch for the week of June 29:
iShares Dow Jones US Home Const. (ETF) (NYSE: ITB)
Home construction ETFs will surely be one key sector of the market to watch this week with so much housing data on tap. ITB tracks a market cap weighted index of 40 residential construction companies such as Toll Brothers Inc (NYSE: TOL) and Pulte Group, Inc. (NYSE: PHM).
This ETF has so far bucked the widespread market weakness in June and appears poised to break out above its April high. Further positive economic data would likely lead to additional momentum in the home builder arena and add to gains in ITB.
Related Link: Best And Worst ETFs Of The Week Amid Agriculture Rally
Vanguard Extended Duration Treasury ETF (NYSE: EDV)
Long-duration Treasury bonds hit a new year-to-date low on Friday as interest rates continued their march higher. EDV tracks an index of long-term U.S. Treasury STRIPS with an average duration of 24.9 years. This ETF is even more sensitive to interest rates than the venerable iShares 20+ Year Treasury Bond ETF (NYSE: TLT).
The weakness in Treasuries is likely the result of fixed-income investors worrying about the impact of the Federal Reserve hiking interest rates. EDV is now down 13 percent so far this year and continues to illustrate the dispersion of high credit quality assets in the bond market.
First Trust NASDAQ Global Auto Index Fund (NASDAQ: CARZ)
June motor vehicle sales are set to be released on Wednesday, with the consensus forecast of 17.2 million units. This data will likely impact CARZ, which tracks a global index of 37 auto manufacturers. Top holdings in this fund include Ford Motor Company (NYSE: F) and Toyota Motor Corp (NYSE: TM).
So far this year, CARZ has gained 7.6 percent, which is likely as a result of its overweight position in Japanese companies. Continued strength in auto sales data may help this ETF continue its winning streak in the second half of 2015.
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