NEW YORK ( TheStreet) -- Here are five ETFs to watch this week.iShares Dow Jones U.S. Telecommunications Sector Index Fund ( IYZ) The Federal Communications Commission took aim at AT&T ( T) last week, when it released a report documenting its concerns regarding the firm's multi-billion dollar plan to acquire T-Mobile. The FCC is not the only regulatory body to object to the proposed deal; the Department of Justice has also criticized AT&T, claiming that the merger would infringe on anti-competition laws. The controversy has led many to doubt the possibility that the plan will go through. The Financial Times has reported in recent days that the German government, Deutsche Telekom's largest shareholder, is one group that is expressing worries. IYZ enjoyed some impressive gains last week. However, choppy action could be in store in the days ahead as AT&T takes steps to overcome hurdles. Like other telecommunications ETFs, IYZ is heavily reliant on the performance of this industry leader. AT&T is the fund's largest holding, accounting for over 18% of its assets. iShares MSCI EMU Index Fund ( EZU) Signs of progress in the ongoing European sovereign debt crisis helped to reignite investor confidence last week, pushing the U.S. markets to some refreshing gains. The upward action helped EZU recover nearly all the losses during its late-November sell off. On Friday, EU leaders will convene in Brussels for a summit. Those following the ongoing drama taking place in this corner of the developed world will want to keep close watch on how this meeting progresses. This break from the doom and gloom has been encouraging. However, I urge investors to avoid being lured into Europe at this time. Sentiment continues to shift at a moment's notice. In the event that fear makes a comeback, those with excessive exposure to risky areas of the globe will find themselves particularly vulnerable to losses. ETFS Physical Palladium Shares ( PALL) Across the spectrum of physically-based precious metals ETFs, PALL was a notable winner. A combination of market strength and strong auto sales numbers played a primary role in fueling the white metal's five-day winning streak. PALL should be approached with caution. Palladium is inherently volatile and will likely volley as investor confidence continues to swing between euphoria and despair.