ETF Affected by British Pound?

April 19, 2007 at 1:08 pm by Tom Lydon

Pound The United Kingdom exchange traded fund (ETF), iShares MSCI United Kingdom Index (EWU) could see some positive effects from the rise of the British Pound. This week, the Pound broke through the $2 mark for the first time in fifteen years, writes Carl Delfeld for ETFXRAY.com.

Inflation seemed to be the culprit in moving the pound past $2.  With a rising CPI rate in the U.K., there has been speculation of a hike in interest rates.  This new level could help keep a lid on inflation, but it can also make exports more expensive for international markets.  The markets should bring things in balance.

Meanwhile, EWU is up 7% year-to-date, with top holdings in BP at 6.08% and HSBC Holdings at 6.66%. Also available for ETF investors is the CurrencyShares British Pound (FXB).

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Read the disclosure, as Tom Lydon is a board member of Rydex Funds

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    • Tom Lydon: Thanks, Donato. We reread what we wrote, and realize that it was misleading and didn’t represent...
    • Tom Lydon: Hi Harry, The fund has not launched yet. We’ll let you know when it does. RVEI is the ticker symbol...
    • HARRY FOREMAN: I’M CONFUSED: WHAT IS THE SYMBOL? RICI RJI RVEI HAS NOT THE NEW FUND(RVEI) BEEN STARTED YET?
    • Tom Lydon: Hi Ted and Sheia, There is the PowerShares Financial Preferred (PGF), iShares S&P U.S. Preferred...
    • Tom Lydon: Thank you Paul for pointing this out. I apologize, it should be that ITA is down 15.5% year-to-date, not...

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