Skip to main content

NEW YORK (TheStreet) -- Here are a number of opportunities for ETF investors this week.

iShares Dow Jones U.S. Pharmaceuticals Index Fund

(IHE) - Get iShares U.S. Pharmaceuticals ETF Report

The health care industry has been a choppy region of the market recently as companies mull ways to deal with the passage of Washington's sweeping reform bill. One subsector of this industry that has performed noticeably well however has been the pharmaceuticals.

Over the past 90 days, IHE has handlely outperformed ETFs designed to track other regions of the health care industry such as the

iShares Dow Jones U.S. Healthcare Providers Index Fund

(IHF) - Get iShares U.S. Healthcare Providers ETF Report

and the

iShares Dow Jones U.S. Medical Equipment Index Fund

(IHI) - Get iShares U.S. Medical Devices ETF Report

.

Looking to this week, IHE will be an exciting fund to watch as a number of major holdings, including

Bristol-Myers Squibb

(BMY) - Get Bristol-Myers Squibb Company Report

,

Merck

TheStreet Recommends

(MRK) - Get Merck & Co., Inc. Report

,

Hospira

(HSP)

and

Mylan

(MYL) - Get Viatris, Inc. Report

step up to report their performance over the past quarter.

ETFS Physical Precious Metals Basket Shares

(GLTR) - Get Aberdeen Standard Physical Precious Metals Basket Shares ETF Report

Precious metals remain a wildly popular region of the market as investors seek out ways to protect against broad market volatility. Late last week ETF Securities, a relative newcomer to the U.S. ETF industry, launched one of the more unique plays on this attractive asset class.

Whereas in the past, investors seeking physical exposure to precious metals could only pick them out one at a time using funds such as

iShares Gold Shares

(IAU) - Get iShares Gold Trust Report

and

ETFS Physical Palladium Shares

(PALL) - Get Aberdeen Standard Physical Palladium Shares ETF Report

, GLTR combines exposure to four metals: gold, silver, platinum, and palladium, under one roof.

While I foresee GLTR becoming a force to be reckoned with within the precious metals ETF arena, the fund is still new to the industry and therefore may take some time to gather steam.

iShares Dow Jones U.S. Aerospace & Defense Index Fund

(ITA) - Get iShares U.S. Aerospace & Defense ETF Report

Earnings season will once again thrust the aerospace and defense industry into the spotlight this week. Earnings reports from top ITA's holdings

Boeing

(BA) - Get Boeing Company Report

,

Lockheed Martin

(LMT) - Get Lockheed Martin Corporation Report

and

United Technologies

(UTX) - Get n.a. Report

are out of the way, and this week a number of other major players within the fund's portfolio are slated to report their performance.

Investors with exposure to ITA should keep a close watch on the reports expected to come from

General Dynamics

(GD) - Get General Dynamics Corporation Report

,

Raytheon

(RTN) - Get Raytheon Company Report

,

Northrop Grumman

(NOC) - Get Northrop Grumman Corporation Report

,

Rockwell Collins

(COL)

and

L-3 Communications

(LLL) - Get JX Luxventure Limited Report

.

iShares FTSE/Xinhua China 25 Index Fund

(FXI) - Get iShares China Large-Cap ETF Report

When it comes to gaining exposure to China, I typically advise investors to turn to the small- cap oriented

Guggenheim China Small Cap ETF

(HAO) - Get Invesco China Small Cap ETF Report

over the large cap, state-owned-enterprise dominated index underlying FXI. However, with half of this fund's index scheduled to report earnings this week, this China-focused ETF will be exciting to watch.

Economic headwinds facing the U.S. and Europe are causing investors to turn their attention overseas to opportunities present in the emerging markets. ETFs provide investors a unique opportunity to gain direct exposure to the economies of popular nations such as China, Brazil and India.

First Trust ISE Revere Natural Gas Index Fund

(FCG) - Get First Trust Natural Gas ETF Report

Oil industry heavyweights from around the world will dominate this week's earnings schedule but playing them with ETFs is a bit tricky.

Companies on board to report their earnings include

Exxon Mobil

(XOM) - Get Exxon Mobil Corporation Report

,

ConocoPhillips

(COP) - Get ConocoPhillips Report

,

Chevron

(CVX) - Get Chevron Corporation Report

,

Hess

(HES) - Get Hess Corporation Report

,

Total

(TOT) - Get Total SA Report

, and

Royal Dutch Shell

(RDS.A)

(RDS.A).

Rather than choosing a broad energy fund such as

iShares Dow Jones U.S. Energy Sector Index Fund

(IYE) - Get iShares U.S. Energy ETF Report

to follow these earnings, First Trust's natural gas fund may be a bigger beneficiary. Oil giants are becoming increasingly involved with the natural gas industry and are therefore qualifying for positions within FCG's portfolio. XOM, COP, HES, TOT and RDS account for over 17% of the fund's total portfolio.

Written by Don Dion in Williamstown, Mass.

Readers Also Like:

>>5 Favorite MLPs for Income and Growth

At the time of publication, Dion Money Management is long iShares Dow Jones U.S. Pharmaceuticals Index Fund and iShares Gold Shares.

Don Dion is president and founder of

Dion Money Management

, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.