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NEW YORK (TheStreet) -- Here are five ETFs to watch this week.

iShares MSCI EMU Index Fund

(EZU) - Get Free Report

Europe took center stage last week as investors were once again reminded of the debt crises facing vulnerable euro members. During this week, it will be interesting to see if these issues remain on the forefront of investors' minds.

I continue to urge investors to avoid products with heavy exposure to nations like Spain, Italy, Greece and Ireland. Rather, risk-tolerant investors seeking exposure to this corner of the developed world may find nations outside of the euro bloc attractive. Over the most recent 30-day period, funds like the

iShares MSCI Sweden Index Fund

(EWD) - Get Free Report


iShares MSCI Switzerland Index Fund

(EWL) - Get Free Report

have managed to outpace EZU.

Market Vectors Vietnam ETF

(VNM) - Get Free Report

Inflation concerns have wreaked havoc on the Vietnam's market, leading the VNM to suffer a heavy bout of losses. Throughout the latter half of May, the fund witnessed a steep sharp sell-off, ultimately resulting in new all-time lows.

VNM's steep decline over the past few weeks can be viewed as a reminder of the volatility inherent in emerging and frontier markets. Although nations like Vietnam can witness strong upside action during times of market euphoria, it is crucial to keep exposure to these countries small and focused. This way, investors can protect against weakness.

First Trust NASDAQ Global Auto ETF

(CARZ) - Get Free Report

In its opening weeks of trading, First Trust's automotive ETF has struggled to gather much of a following. During this shortened week, however, CARZ may be a product to keep an eye on.

Auto and truck sales numbers are slated to be released this Wednesday. Whereas in the past I have often pointed investors to products such as


(XRT) - Get Free Report

or the

iShares Dow Jones U.S. Consumer Goods Index Fund

(IYK) - Get Free Report

in order to track the car industry, with the introduction of CARZ, investors can now gain direct access to the top car makers from around the globe.

Ultimately, CARZ should be watched from the sidelines. The fund's paltry average trading volume makes it vulnerable to liquidity issues.

Utilities Select Sector SPDR

(XLU) - Get Free Report

XLP and other ETFs designed to track defensive market sectors may prove to be popular destinations for conservative investors as we kick off June.

May was a strong month for consumer staples, utilities, and the health care sector. As wide-reaching global economic concerns weighed heavily on the broad market indices, the

Consumer Staples Select Sector SPDR

(XLP) - Get Free Report

, XLU, and

Healthcare Select Sector SPDR

(XLV) - Get Free Report

managed to outperform.

Looking to the near future, many of the same issues that plagued the global markets in May look set to continue. Devising a strong plan for defense will be essential to successful market navigation.

PowerShares Dynamic Leisure & Entertainment Portfolio

(PEJ) - Get Free Report

The summer vacation season is gearing up and as consumers prepare to escape their offices for a little rest and relaxation, investors may want to keep the PEJ and other consumer-focused funds on the radar.

Despite concerns regarding the detrimental effects of rising commodity costs, the consumer has proven to be a resilient corner of the market during the first half of 2011. It will be interesting to see if this strength holds up during the coming months.

Written by Don Dion in Williamstown, Mass.


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At the time of publication, Dion Money Management owned iShares MSCI Sweden Index Fund, iShares MSCI Switzerland Index Fund and iShares Dow Jones U.S. Consumer Goods Index Fund.