The United Kingdom exchange traded fund iShares MSCI United Kingdom Fund (NYSEArca: EWU) is positioned to get a boost from hosting the Olympics.
“I am confident that we can derive over 13bn pound benefit to the UK economy over the next four years as a result of hosting the games. I am certain that when you add in the benefits from construction the total gain will be even greater,” David Cameron,Prime Minister of the U.K. said, regarding the economic impact of the Olympics.
The ETF focuses about 17% of assets to consumer staples, and another 6% to consumer discretionary. Energy and financials make up the other top holdings. EWU has been able to gain about 4.5% over the first half of 2012. [5 Global ETFs to Watch]
UK Trade and Investment calculated the figure based on the impact of prior games with similar business plans, like the Sydney 2000 games, reports Helene Mulholland for The Guardian. The total is considering the 9 billion pound investment that it would cost to stage the games.[ETF Spotlight: United Kingdom]
Another aspect that will be tackled by Cameron is the effort to make sure the benefits would be lasting, from sports participation, to business and volunteering.
Other considerations have to be made, such as the strain that the crowds may have on the public transport system.