A labor-led government reliant on support from the Scottish National party to take power “would raise the spectre of a disunited kingdom,” BlackRock said. “This could turn the UK into a sort of pre-crisis Spain.”
The money manager cautioned that a labor-led coalition could “threaten the profitability of highly regulated industries such as banking.. and utilities.”
The financial sector makes up a significant portion of the U.K.-related ETFs. EWU includes a 22.9% tilt toward financials and 4.1% in utilities. DBUK has 22.6% in financials and 4.0% in utilities. DXPS holds 18.4% financials and 5.3% utilities.
iShares MSCI United Kingdom ETF
For more information on the U.K., visit our United Kingdom category.
Max Chen contributed to this article.