Global markets bounced Monday, with Europe-related exchange traded funds leading the charge, after polls revealed a rising number of Brits leaning toward “remain” in the upcoming “Brexit” vote.
On Monday, the iShares MSCI United Kingdom ETF’s (NYSEArca: EWU), the largest U.K.-related ETF, and iShares MSCI United Kingdom Small-Cap ETF (NYSEArca: EWUS), which provides exposure to small-cap U.K. stocks, were among the best performing ETFs, surging 4.5% and 5.0%, respectively. Both ETFs popped back above their 50- and 200-day simple moving averages as well.
Related: ETFs to Watch as Brexit Uncertainty Mounts
Meanwhile, the broader Vanguard FTSE Europe ETF (NYSEArca: VGK) rose 3.2% and also pushed above its short- and long-term trend lines.
European equities have experienced heightened volatility due to an impending United Kingdom referendum that would decide whether the U.K. would remain within the European Union, or so-called Brexit vote, on June 23. Markets have been depressed following a number of polls that revealed a higher number of those in the leave camp last week.
[related_stories]However, the selling may have been overdone and markets saw strong rally Monday after weekend polls showed an more in the “stay” camp. The Mail survey revealed 45% of respondents wanted to stay int eh 28-member EU, with 42% wanting to leave, while a Sunday Times survey said 44% wanted to remain and 43% wanted to leave, reports Adam Shell for USA Today.
“Brexit momentum is turning to ‘stay’ in the final days of the campaign,” which has prompted investors to reverse the bearish bets they had in place last week when risks of a Brexit were higher, Daniel Clifton, an analyst at Strategas Research Partners who specializes in politics and policy, said in a research note.
Related: 16 Europe ETFs to Hedge Foreign Exchange Risks
ETF investors who are interested in tracking the broader European markets have a number of ETF options available.
Broad Europe ETFs:
- Vanguard FTSE Europe ETF (NYSEArca: VGK)
- iShares MSCI EMU ETF (NYSEArca: EZU)
- SPDR EURO STOXX 50 (NYSEArca: FEZ)
- iShares Europe ETF (NYSEArca: IEV)
- iShares Core MSCI Europe ETF (NYSEArca: IEUR)
- SPDR STOXX Europe 50 ETF (NYSEArca: FEU)
- iShares MSCI Europe Small-Cap ETF (NasdaqGM: IEUS)
- Global X FTSE Nordic Region ETF (NYSEArca: GXF)
- SPDR S&P Emerging Europe ETF (NYSEArca: GUR)
- SPDR EURO STOXX Small Cap ETF (NYSEArca: SMEZ)
- PowerShares BLDRS Europe 100 ADR Index Fund (NYSEArca: ADRU)
- iShares MSCI Emerging Markets Eastern Europe Index Fund ETF (NYSEArca: ESR)
For more information on Europe, visit our Europe category.