Investors looking for an equity play that profits from a weaker pound, assuming BoE increases its stimulus efforts, may want to consider the new WisdomTree United Kingdom Hedged Equity Fund (NYSEArca: DXPS). DXPS hedges fluctuations in the pound/U.S. dollar currency pair while offering exposure to 140 U.K. stocks, a lineup that includes a 5% weight to BP. [International ETFs: Overcoming Home Bias]
DXPS is not even a month old, so it is still small with just over $2.5 million in assets, but like EWU, the new U.K. ETF has shown some sensitivity to positive U.K. economic news, gaining 3.1% since its debut. Investors looking for U.K. small-caps can consider the iShares MSCI United Kingdom Small-Cap ETF (NYSEArca: EWUS), which has gained 1% in the past week.
iShares MSCI United Kingdom ETF
ETF Trends editorial team contributed to this post.