ETF Investors Seek Out Profits from Weak Sterling

Passive fund investors have been looking at ETFs which may benefit from a fall in the UK currency, according to the Morningstar most popular list in June

Karen Kwok 15 July, 2016 | 12:26AM

Investors are looking to benefit from weak sterling post Brexit, data from Morningstar showed.

Sterling responded badly to the Brexit result on June 24, falling 10% overnight against the dollar. In the weeks following, the UK currency had fallen to levels not seen in 31 years, with a pound worth just $1.28.

Despite the UK currency spiking in value on Thursday as this week the Bank of England refrained from cutting interest rates to 0.25%, continuing Brexit-related uncertainty will put the currency under further pressure in the months ahead, said Anthony Doyle, investment director at M&G.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ETFS 3x Short GBP Long USD61.27 USD-0.09
ETFS Physical Gold GBP13,525.67 GBX-0.26
iShares Core FTSE 100 ETF GBP Dist599.00 GBX0.77
iShares UK Dividend ETF GBP Dist562.63 GBX1.02
iShares UK Property ETF GBP Dist500.15 GBX1.03
Vanguard FTSE 100 UCITS ETF26.92 GBP0.99
Vanguard FTSE 250 UCITS ETF26.88 GBP1.10
Vanguard FTSE All-World UCITS ETF GBP70.14 GBP0.41
Vanguard S&P 500 UCITS ETF GBP47.37 GBP0.77

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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