Fraszczyk also notes the benefits of the U.K. as dividend destination.
“The UK should be interesting for dividend US players as the US equities pay much higher avg divided yield. The average for US is around 2% while for UK around 3-4%. Also the UK equities are more decorrelated with Europe than Germany but this is probably due to allocations. I also like the fact that UK small caps are a kind of gold play which potentially should be a good equity hedge and diversifier,” he said. [U.K. Dividends Can Deliver]
Smaller U.K. stocks are more levered to an increase in gold prices. For example, a 10% rise in gold prices is associated with a 2.2% rise in the FTSE 250, which offers more mid-cap exposure than the FTSE 100, according to Investors Chronicle.
EWUS/EWU Comparison
Chart Courtesy: Bartlomiej Fraszczyk