Investors Eye Low-Cost Funds for Income

Passive investors are looking to profit from weak sterling and dividend stocks, data from Morningstar.co.uk reveals

Karen Kwok 20 September, 2016 | 2:44PM

Passive-fund investors are looking to take profits from weak sterling following the Brexit vote, data from Morningstar.co.uk reveals. Passive funds that track the UK’s largest companies’ index – and whose international revenues have received a boost as the pound has fallen – were the most popular among readers in August, as well as those that invest in US equities.

Vanguard FTSE 100 ETF (VUKE) and Vanguard FTSE All-World (VWRL) were the most clicked on exchange-traded funds on Morningstar.co.uk last month, followed by Vanguard S&P 500 ETF (VUSA). iShares UK Dividend ETF (IUKD). iShares Core FTSE 100 ETF (ISF) and ETFs Short GBP Long USD (SGB3) were also in the top 10 list.

Benefiting from Weak Sterling

Uncertainty arising from the UK’s vote to leave the European Union did not hold back passive investors’ appetite for investment opportunities. As well as developed market equity funds, ETFs Short GBP Long USD (SGB3) also proved popular – a bond fund which benefits from weak sterling and a strong US dollar.

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About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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