BlackRock’s iShares also provides a small-cap U.K. offering, the iShares MSCI United Kingdom Small-Cap ETF (NYSEArca: EWUS), which includes 74.5% in mid-caps and 25% in small-caps. Holdings are more equally weighted with its largest component weight ASOS Plc at 1.8% of the portfolio. The ETF is up 4.9% year-to-date. [Small-Cap Royalty With This ETF]
Alternatively, the First Trust United Kingdom AlphaDEX Fund (NYSEArca: FKU) provides a smart-beta play on U.K. stocks as the underlying index selects components based on factors like book value to price, cash flow to price and return on assets. The ETF also takes a greater tilt toward mid-cap stocks at 64.4% of the portfolio and spreads out component allocations, with its largest weight in Capital & Counties Properites at 2.5%. FKU has gained 4.9% so far this year.
Additionally, if you are worried about a depreciating British pound sterling, investors can gain exposure to the U.K. and hedge against the weaker currency with ETF options like WisdomTree United Kingdom Hedged Equity Fund (NasdaqGS: DXPS) and db X-trackers MSCI United Kingdom Hedged Equity Fund (NYSEArca: DBUK), which are up 0.7% and up 0.2% year-to-date, respectively. [U.K. ETF Finds Support As BOE Holds Stands Pat]
For more information on the U.K., visit our United Kingdom category.
Max Chen contributed to this article.