Here are six ETFs to watch this week.
1. Market Vectors Agribusiness ETF
The agriculture industry remains on the minds of investors as rising food prices continue to steal headlines around the globe. Investors looking for equity exposure to this industry should turn their attention to MOO.
Boasting exposure to equipment producers such as Deere and agriculture chemical firms such as Potash of Saskatchewan , MOO provides investors with broad access to companies responsible for satisfying global food demand.
On Tuesday, top MOO component Archer Daniels Midland will release its quarterly earnings performance. The bar appears high because earnings performance so far from other agribusiness players including DE, POT, Monsanto and Mosaic have been impressive.
2. Market Vectors Egypt ETF
As investors attempted to gain access to the ongoing protests taking place in Egypt at the end of last week, EGPT went from being a lightly traded, largely ignored international ETF to one of the most closely watched global funds of the day.
With an average trading volume of only 28,000 shares, EGPT has had trouble gaining steam in the past. However, interest in the nation's political situation sent investors pouring into the fund, causing its volume to see a dramatic spike at the close of the week, breaching the 1 million mark on Friday.
While exciting to watch, I do not recommend that conservative investors attempt to try their luck with EGPT due to the volatile nature of the Egyptian marketplace. Additionally, it is unclear if this recent spike in trading volume will persist. If investors lose interest and EGPT's volume reverts back it its low levels after the riots fall out of the headlines, those left with large positions could have trouble unloading.
3. Guggenheim Timber ETF
The timber sector will be heavily influenced by this week's loaded earnings calendar with major industry players including Wyerhauser, Plum Creek Timber , Nippon Paper Group,UPM-Kymmene and International Paper scheduled to report.
Guggenheim's CUT offer the strongest, most liquid way to gain direct exposure to target the performance of these companies.
CUT has seen a strong run up throughout the opening weeks of 2010, leading the fund to recapture levels seen prior to the 2008 economic meltdown. While a round of strong earnings could help propel the fund higher, investors should remain cautious.
Looking ahead, it will be important to keep a close watch on the real estate industry when attempting to navigate this region of the market. In the event that storms gather, timber demand could head south.