Part of the problem for DXPS has been currency traders embracing sterling as a safe-haven as emerging markets currencies have tumbled. “The British Pound has emerged as an unlikely top performer and perhaps safe haven du jour as few developed economies have seen the resiliency the UK economy has since May. The past week or so, the Sterling has been quite strong against the commodity complex in particular, as emerging market weakness has started to impact the entire Asia-Pacific region,” writes Christopher Vecchio for DailyFX.
DXPS could benefit later this year as new Bank of England Governor Mark Carney perhaps rolls out new easing measures and looks to suppress long-term yields on U.K. sovereign bonds.
WisdomTree United Kingdom Hedged Equity Fund
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of DXJ.