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
Facebook Twitter LinkedIn


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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Invesco UK Gilts ETF GBP Acc4,053.25 GBP-0.06
iShares Core UK Gilts ETF GBP Dist13.59 GBP-0.20
iShares UK Gilts All Stks Idx (UK) D Acc179.80 GBP0.28Rating
SPDR® Blmbrg Bcly UK Gilt ETF59.23 GBP0.00

About Author

Jose Garcia Zarate

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