Gilt ETFs for a UK Recession

Investors looking for protection if the UK falls into recession may find shelter in gilt ETFs, says Morningstar analyst Jose Garcia-Zarate

Jose Garcia-Zarate 15 August, 2019 | 9:40AM

treasury

The prospect of a UK recession has reared its head after official figures revealed the economy contracted by 0.2% in the second quarter of the year.

The worry is that the economy’s performance in the third quarter may be negatively impacted by the mix of ongoing Brexit uncertainty and a worsening global outlook. Indeed, Brexit is not helping the situation, with the likelihood of a recession put at one-in-three in the event of a no-deal Brexit at the end of October.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Invesco UK Gilts ETF GBP Acc4,358.53 GBP0.24
iShares Core UK Gilts ETF GBP Dist14.81 GBP0.15
iShares UK Gilts All Stks Idx (UK) D Acc190.80 GBP-0.26
SPDR® Blmbrg Bcly UK Gilt ETF64.40 GBP-0.34

About Author

Jose Garcia-Zarate

Jose Garcia-Zarate  is Associate Director of Passive Strategies Research for Morningstar Europe

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