Five ETFs to Watch This Week

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

SPDR KBW Banks ETF ( KBE)

Macroeconomic issues facing the EU, China, and other regions of the globe will continue to commanded headlines and steer investor sentiment. However in addition, during the coming weeks, earnings will be in the spotlight as companies across the market spectrum report earnings.

Banking goliath JPMorgan ( JPM) is one of the first companies to step up to the plate. It has been a rough road for JPM and the rest of the financial sector as confidence wanes and many begin to question global economic growth prospects.

While I would encourage cautious investors to avoid turning to ETFs linked to the financials at this time, KBE will be an exciting product to watch as earnings season heats up. The fund casts a wide net over the banking sector, exposing investors to Wall Street kings like JPMorgan and Bank of America ( BAC) as well as smaller regional banks.

First Trust Dow Jones Internet Index Fund ( FDN)

Google ( GOOG) is another big name slated to announce its quarterly earnings numbers this week. The firm's performance will likely provide investors with important clues as to the state of the internet industry.

Investors looking to tap into this corner of the tech sector should turn to FDN. Google is FDN's largest holding, accounting for nearly 10% of its portfolio.

Already, we have witnessed some rumblings of strength across the IT industry. During the latter half of September, software giants Adobe ( ADBE) and Oracle ( ORCL) managed to beat our earnings estimates. It will be interesting to see if Google will be able to continue this trend in the days ahead.

SPDR S&P Retail ETF ( XRT)

In last week's piece, "Seeking Shelter in Consumer ETFs," I provided investors with a number of options they can turn to in order to gain safe exposure to the consumer sector. In the days ahead, this market segment will be in focus when September retail sales numbers are released.

Given its dedication to the retail industry, XRT will likely see some of the most notable action as the markets digest this news. For more conservative investors, however, a fund like the iShares Dow Jones Consumer Goods Index Fund ( IYK) may be a better option to turn to.

By spreading its assets across both the consumer staples and consumer discretionary sectors, IYK offers an attractive balance of risk and protection.

iShares FTSE China 25 Index Fund ( FXI)

China's markets have become a widely followed corner of the global economic picture recently as analysts and market commentators express concerns about a potential "hard landing."

Debate over the prospects for this emerging market growth engine will continue to rage in the days ahead. Wednesday's trade report will be of particular interest for those following the developments.

iShares iBoxx $ Investment Grade Corporate Bond Fund ( LQD)

It will be interesting to see if investors will take steps back into the market over the next few days to capitalize on last week's multi-day string of gains. For many it may be tempting to dive head first into risk in hopes of regaining losses. This strategy, however, leaves an investor vulnerable to an unnecessary amount of risk.

Investment grade corporate bonds will likely present a safer and more appropriate reentry option for the most conservative of investors. LQD's index is comprised of highly-rated debt securities issued by a diverse collection of companies including Wal-Mart ( WMT), AT&T ( T) and JPMorgan ( JPM). In addition, the fund offers an attractive 4.6% yield.

Written by Don Dion in Williamstown, Mass.

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At the time of publication, Dion Money Management owned iShares Dow Jones Consumer Goods Index Fund.

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