Although sterling may be due for a bounce, FXB is down 5.5% this quarter and lighter by $16.2 million in assets.
Sterling’s woes have been good news for the WisdomTree United Kingdom Hedged Equity Fund (NasdaqGM: DXPS). DXPS is not yet ready to join the currency-hedged ETF pantheon established by the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) and the WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ), but ongoing pound weakness will shine a light on this ETF.
DXPS has its perks beyond the obvious of getting a lift from pound weakness. Those advantages include the ETF being reflective of the U.K.’s status as one of the top developed market dividend destinations outside of the U.S. The ETF’s almost 4.7% distribution yield speaks to that fact. The ETF has added $5.24 million in new assets this quarter.
iShares MSCI United Kingdom ETF
ETF Trends editorial team contributed to this post.