In the trailing one year period, FXB has fared considerably better than FXE as well, down only 2.73% versus FXE’s return of -12.02%. Meanwhile, UUP has rallied 5.08% during this time frame.
FXB only trades about 30,000 shares daily, but based on the nature of the underling index in being linked to the British Pound, sizable trades from a notional dollar standpoint can be executed on either side of the market with mitigated price impact. FXB, along with other Currency based ETPs, may be an effective way to hedge specific exposures (equity or otherwise) and mitigate continental political or headline risk that may negatively impact portfolios.
CurrencyShares British Pound Sterling
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