Five ETFs to Watch This Week

The government's GDP report along with earnings and industry reports will impact these ETFs.
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NEW YORK (TheStreet) -- Friday's GDP report is the economic highlight of the week, while earnings announcements and industry reports will have a bearing on these ETFs.

iShares Dow Jones U.S. Home Construction Index(ITB) - Get Report


(LEN) - Get Report

represents 8% of this ETF and it reports earnings before the bell on Wednesday. Analysts are looking for a loss of 30 cents a share, which is up from an expected loss of 46 cents a share three months ago. Estimates for 2010 full year earnings have also moved higher, from a loss of 72 cents a share to a loss of 32 cents a share.

In addition to the earnings news, a report on existing home sales for February will be released on Tuesday and new home sales for the same month will be released Wednesday.

The homebuilder ETF has been strong of late: It matched its 52-week intraday high of $13.93 last Wednesday, while setting a new 52-week closing high on the same day.

SPDR S&P Retail

(XRT) - Get Report

Best Buy

(BBY) - Get Report

reports Thursday morning for the quarter ending in February, which includes the holiday season and the first two months of this year.

Unlike Lennar, the earnings estimates for Best Buy have pretty much stayed flat, climbing only one cent to $1.79 over the past three months. Analysts are either confident or aiming for the middle. In the past four quarterly reports, Best Buy beat earnings estimates by double digits thrice and missed by double digits once.

Electronics are wants, not needs, and strong earnings here will be a signal that the consumer is still very much alive. Although Best Buy is only 1.3% of XRT, but its report is likely to have a larger indirect effect on the ETF due to a light earnings week.

Currencyshares Euro Trust

(FXE) - Get Report

The euro/U.S. dollar exchange rate neared its 2010 lows on Friday, positioning the euro for a bounce or a breakdown. Given the overall trend and the situation in Greece, no news is bad news for the euro and down is the most probable direction.

FXE's intraday low this year is $134.32 and the fund is less than 1% from that level. Investors can double down on their anti-euro bets with

ProShares UltraShort Euro

(EUO) - Get Report

, which delivers two times the daily inverse of the change in the euro/U.S. dollar exchange rate.

United States Natural Gas Fund

(UNG) - Get Report

This is the fund that keeps on giving -- to the shorts. Natural gas has conspicuously slid to new low after new low, despite a broad rise in other energy and commodity prices over the past year and daily new highs for many equities.

UNG has suffered an almost uninterrupted decline since July 2008, and a bottom is still waiting to be discovered. Last week's dip was caused by the arrival of spring weather in the Northeast and other parts of the country. Storage did decline slightly, but inventory remains above the five-year average.

iShares MSCI Israel

(EIG) - Get Report

Bank Hapoalim, one of the largest banks in Israel, reports earnings on Thursday. It accounts for 4.8% of EIS. The bank can shed some light on the country's economic situation, which looks quite positive. Israel's economy didn't need to rebound much from its mild recession. A clear sign of its relative strength compared to other economies is consumer confidence in the country, which is at a 10-year high.

Also in play is the aftermath from the

Teva Pharmaceuticals

(TEVA) - Get Report

buyout of Germany's Ratiopharm last week. The takeover was greeted warmly by investors, who pushed shares up 3.4% on the day of the announcement.

Acquirers typically decline on news of a buyout, but this deal is seen as positive for Teva because it gives the firm a strong position in Germany, which it lacked, as well as solidifies its position in the global generics market after fending off


(PFE) - Get Report

rival bid. Because Teva makes up 24% of EIS, it is always an important stock to watch for EIS holders.

-- Written by Don Dion in Williamstown, Mass.


At the time of publication, Dion is long iShares MSCI Israel.

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.