European, Social Media And Consumer Discretionary ETFs To Watch This Week

The market proved last week that the buyers are back in control, as further gains were swiftly captured across nearly every major sector.

The week ahead features the release of monthly FOMC minutes along with consumer sentiment and GDP data. In addition, markets open trading after having digested the recently released European Central Bank stress test results over the weekend.

Here are the key ETFs to watch for the week of October 27:

iShares MSCI Europe Financials ETF EUFN

The release of ECB stress test data over the weekend indicated that 25 European banks failed to offer adequate capital requirements. This included a $32-billion shortfall at the end of 2013 that has largely been addressed to date.

Related Link: Global X Launches Two New Rules-Based ETFs

This news has the potential to impact European-focused ETFs at the beginning of the week, and none more so than EUFN. This regional sector fund offers exposure to 104 financial institutions within the European Union and includes total assets of more than $400 million.

EUFN experienced a sharp decline in early October that reversed course last week on the global equity rebound. This ETF will need to overcome concerns of financial stability throughout Europe in order to build on those recent gains.

Global X Social Media ETF SOCL

Well known internet companies Facebook Inc and Twitter are set to report earnings this week, which has the potential impact the social media industry. SOCL tracks 30 global social media companies, of which Facebook and Twitter are listed in the top five holdings.

This ETF has experienced sub-par performance in 2014 with a loss of 11 percent year to date. However, better than expected announcements from these closely watched companies may be just what SOCL needs to regain its upward momentum.

Consumer Discretionary Select Sector SPDR ETF XLY

Consumer discretionary stocks have experienced a mix bag of earnings announcements that included weak results from Amazon.com, Inc. and McDonald's Corporation. The week ahead features the release of consumer spending and sentiment data that may provide additional clues for this sector.

XLY tracks 86 large-cap companies engaged in the leisure, retail, automotive and media industries. These stocks tend to be economically sensitive to changes in consumer spending patterns, which should be indicating above-average activity as we head into the holiday months.