Technology, Inflation Protection And Biotech ETFs To Watch This Week

The market continued its schizophrenic pace last week as the SPDR S&P 500 ETF SPY fell 1 percent and re-entered its sideways trading range. The lack of conviction from the bulls to capture new all-time highs was the result of uncertainty in overseas stocks on Friday.

Nevertheless, trading will open on Monday with renewed earnings data to focus on as International Business Machines and Morgan Stanley are set to report quarterly results. The week ahead also features several important economic releases including housing data and durable goods orders.

Here are the key ETFs to watch for the week of Monday, April 20:

First Trust NASDAQ Technology Dividend Index Fund TDIV

IBM is a major component of the Dow Jones Industrial Average, yet also plays a pivotal role as a technology dividend stock.  With the tech giant set to report earnings on Monday, ETF investors should pay close attention to TDIV.

TDIV is a specialized sector fund dedicated to technology companies with a dividend focus. Companies within the index must have paid a dividend in the last 12 months and individual stock weightings are based on aggregate cash payouts.

IBM is the largest holding in TDIV, with over 8 percent of the $700 million in total assets. The market’s reaction to earnings on Monday will play an important role in trading next week.

Related Link: Best And Worst ETFs Of The Week Amid Energy Rebound

iShares TIPS Bond ETF TIP

The largest ETF dedicated to inflation protected bonds, TIP, had a big gain on Friday amid the highest volume of the last 12 months. This fund is now trading near one-year highs and may be set to break out of its sideways malaise.

Despite tepid inflationary statistics, TIP appears to be picking up some momentum and may acquire renewed interest if additional volatility in stocks continues. This fund will certainly be one to watch as its recent price action has decoupled from traditional Treasury bonds.

iShares NASDAQ Biotechnology ETF IBB

After a brief dip in March, biotechnology stocks are back to their winning ways and continue to be a favored area of momentum. Investors in IBB should note that industry leaders Amgen and Biogen Inc are set to report earnings this week.

IBB is the largest exchange traded fund in this space with over $8.5 billion in total assets. This ETF has gained more than 17 percent so far this year.

Disclosure: At the time this article was published, the author was long TDIV.