Five ETFs to Watch This Week

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

iShares Dow Jones Transportation Average Index Fund ( IYT)

Transportation goliath FedEx ( FDX) is scheduled to announce its quarterly earnings in the latter part of the week. While FedEx's numbers will generate interest from transports fans, the firm's report and outlook will also provide ample clues on the state of the global markets.

FDX is IYT's second largest holding, representing close to 10% of the fund's total portfolio.

August was a rough month for IYT as wearied investors expressed doubts about the global economic recovery. As we have moved further into September, however, the fund has shown signs of stabilizing. In the days ahead it will be interesting to see what is in store for it.

iShares North American Technology-Software Index Fund ( IGV)

Tuesday evening will be busy for the software industry as Oracle ( ORCL) and Adobe ( ADBE) report earnings. These two technology leaders can both be found listed among IGV's top five holdings, accounting for nearly 15% of its portfolio.

Red Hat ( RHT), a fellow IGV component, will follow Oracle and Adobe, reporting its own performance and outlook on Wednesday.

I encourage investors to continue to keep an eye on the technology sector. Although the jittery market action we have witnessed has led many to shun risk, in the event of a turnaround in the near term, this segment of the marketplace may be a source for strength.

iShares Dow Jones U.S. Home Construction Index Fund ( ITB)

Lennar's ( LEN), whose earnings report is slated to be released today, will kick off a busy week for the residential real estate industry. Investors interested in following the action may want to keep a close watch on ITB and the SPDR S&P Homebuilder ETF ( XHB).

On the economic calendar, investors can look forward to the release of data points including housing starts and existing home sales. Meanwhile, the FHFA Housing Price Index report for July will be announced on Thursday.

The residential real estate industry continues to stand out as a notable point of concern. While interesting to watch given the slew of data on tap for this week, I encourage conservative investors to stick to the sidelines with ITB and XHB.

SPDR EURO STOXX 50 ETF ( FEZ)

Europe stole the spotlight again last week as global leaders worked diligently to contain the region's economic crisis. Late in the week, the euro stocks jumped on news that five developed nation central banks, including the Federal Reserve and ECB, were planning to provide funds for the EU in hopes that an injection of liquidity would help relieve some pressure.

The plan has been met with ample scrutiny from investors, market commentators, and analysts, and it is likely that this region will continue to behave in a volatile manner in the weeks ahead. While now may not be the best time to dive into FEZ and other euro-zone ETFs, these products will certainly be interesting to watch.

CurrencyShares Canadian Dollar Trust ( FXC)

The currency markets have become exciting to watch in the days following the Swiss National Bank's franc intervention. With investors still clamoring for ways to protect their portfolios against market turmoil, it will be interesting to see where the next big safe-haven currency turns up.

As I explained last week, the Canadian dollar is one member of the currency spectrum to keep an eye on. Thanks to Canada's relative stability, and continued concerns about prolonged loose monetary policy action on the part of the Fed, there is a possibility that the Loonie may soon find itself filling the void left by the franc.

Written by Don Dion in Williamstown, Mass.

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At the time of publication, Dion Money Management owned CurrencyShares Canadian Dollar Trust.

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