5 ETFs to Watch This Week

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

Industrial Select Sector SPDR ( XLI)

General Electric ( GE) beat analyst estimates in its earnings late last week, indicating once again that the U.S. conglomerate remains steadily on the road to recovery.

The strong showing from GE sets the stage for this week's industrial-heavy week of earnings. On tap are household names including 3M ( MMM), Boeing ( BA), Caterpillar ( CAT), Honeywell ( HON) and United Technologies ( UTX). These companies represent some of the largest slices of XLI's index and together account for over 30% of its portfolio.

Risk- tolerant investors looking for a more volatile play on industrials this week may find a subsector fund such as the iShares Dow Jones U.S. Aerospace & Defense Index Fund ( ITA) attractive. Earnings reports from Boeing, UTX, General Dynamics, Lockheed Martin ( LMT) and L-3 Communications ( LLL) will heavily influence this fund's performance next week.

iShares Dow Jones U.S. Telecommunications Sector Index Fund ( IYZ)

Telecom goliaths Verizon ( VZ) and AT&T ( T) are both slated to release their quarterly earnings report this week. Their performance and outlook for the coming year will heavily influence the performance of IYZ, which dedicates over a quarter of its portfolio to these two entities.

Given the dominance of VZ and AT&T, it is not surprising that these two companies represent such large percentages of telecom ETFs. IYZ, in fact boasts some of the lowest exposure to these players. Its competitor, Vanguard Telecommunication Services ETF ( VOX) sets aside nearly half of its portfolio to the two companies.

First Trust Dow Jones Internet Index Fund ( FDN)

Both eBay and Google ( GOOG) topped analyst estimates, starting the earnings season off on a high note. While the numbers were good, they were largely overshadowed by yet another major shakeup in the tech world. Late last week, Google announced that co-founder Larry Page would take over the firm's reins from Eric Schmidt as CEO. It will be interesting to see what changes will be in store in the coming months.

This week, FDN will be of interest as other major holdings step up to the earnings plate. Netflix ( NFLX), Amazon ( AMZN) and Yahoo! ( YHOO) are all scheduled to report.

Consumer Staples Select Sector SPDR ( XLP)

The consumer will be in focus this week as a number of household names report their quarterly performance. Top XLP positions on the earnings calendar include top holding, Proctor & Gamble ( PG), Altria Group ( MO) and Colgate-Palmolive ( CL).

Consumer discretionary notables will be on tap as well. Investors looking to gauge the state of the consumer will want to keep an eye on earnings reports from both Coach ( COH) and McDonalds ( MCD) which will announce on Monday and Tuesday respectively. Market Vectors Coal ETF ( KOL)

Top KOL components, Peabody ( BTU) and Consol Energy ( CNX) will release their earnings results this week, providing insight into the state of the coal industry over the past three month period.

The coal industry has been an exciting region as Australia battles devastating floods and the Chinese government continues to mull the possibility of taking steps to cool the nation's rapid economic expansion. Both issues are sure to play a part in influencing the performance of KOL in the coming days and weeks.

-- Written by Don Dion in Williamstown, Mass.

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At the time of publication, Dion Money Management owned First Trust Dow Jones Internet Index Fund.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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