The iShares MSCI United Kingdom ETF (NYSEArca: EWU), the largest U.K. ETF trading in the U.S., is not currency hedged, meaning it can be vulnerable to pound weakness.
Sterling still faces multiple challenges as Great Britain sets out on its Brexit course. British Prime Minister Theresa May is aiming for a swift departure from the European Union (EU) while some market observers around the world are hoping for a more measured approach.
Year-to-date, investors have pulled over $56 million from FXB, but with U.K. stocks surging, EWU has seen inflows of about $446.3 million.
“While the latest poll was conducted after the Manchester terror attack, the Tories’ narrowing lead was more likely to have been caused by a row over an unpopular policy on elderly care, Anthony Wells, a research director at YouGov, told the Times newspaper. Most previous surveys had given Prime Minister Theresa May a lead about 10 points or above,” according to Bloomberg.
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