NEW YORK (TheStreet) -- Here are five ETFs to watch this week.
Industrial Select Sector SPDR (XLI)
The industrials have run into trouble the past few months as investors have begun to question the strength of the global economy. Since its July breakdown, shares of XLI have struggled to recover lost ground, as the fund has jockeyed back and forth along a generally sideways path.
During the middle and latter half of the week, investors can expect to uncover important clues regarding the current state and future prospects for this sector. Sprinkled within the busy earnings calendar are names including United Technologies (UTX), General Electric (GE), Honeywell (HON) and Union Pacific (UNP). All of these firms are among XLI's top holdings.Fans of the transportation sector will want to keep close watch on this week's earnings. Aside from UNP, fellow railroad goliaths including CSX (CSX) and Kansas City Southern (KSU) will be on tap. Southwest Airlines (LUV) will also report. Investors looking for dedicated exposure to the transportation sector can turn to the iShares Dow Jones Transportation Average Index Fund (IYT). iShares Dow Jones U.S. Telecommunications Sector Index Fund (IYZ) Although only two of IYZ's top holdings are up for earnings this week, the respective performances from AT&T (T) and Verizon Communications (VZ) (VZ) will have heavily influence the fund's action. Telecommunication ETFs like IYZ are designed to provide investors with expansive exposure to this market segment. However given the dominance of AT&T and Verizon, many of these products dedicate the lion's share of their portfolio to these two companies. In the case of IYZ, nearly one-third of the fund's portfolio is dominated by the two companies. IYZ will be interesting to watch as these two telecom goliaths report their quarterly results. Investors looking to get in on the action need to be cautious. In order to protect against the risks associated with a top-heavy product like IYZ, exposure must be kept small and focused. iShares Dow Jones U.S. Technology Sector Index Fund (IYW) Google's strong earnings performance set the stage for what could be an impressive showing from the technology sector over the next few weeks. In the days ahead, investors will have their sights set on companies such as Apple (AAPL), Intel (INTC), EMC (EMC), and Microsoft (MSFT) as they prepare to report their own earnings numbers and outlooks. International Business Machines (IBM) will kick off this week's tech earnings today.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV