Larry Berman CFA, CMT, CTAiShares MSCI United Kingdom ETFEWUDON'T BUYOct 07, 2019
Large Caps UK. This is a big issue with BREXIT in play. If you look at UKX-T you can see nothing has been gained from 2017 to 2019. He thinks it is very close to a time to invest in the British Pound. He prefers EWUS-T for smaller cap stocks because they have much higher upside. He is starting to nibble.
A past pick. EWU carries the 100 biggest UK stocks; 70% of their revenues come outside the UK, because they're multinationals. The UK left the EU and the world didn't end. Sterling is quite weak, so you can still buy this. The UK will leave the EU by year's end with or without a deal. Pays a 4.5% yield at 14x earnings.
It's a buying opportunity. All UK large cap stocks are trading at a discount even though most companies have profits coming from over sees and are profiting from the weaker point. You get a 4.8% dividend yield while you wait. Brexit will get resolved and you will get a big pop.
A Great Britain ETF? He is not wild about Britain right now, only because the uncertainty is very difficult. Remember you are taking exposure to the British pound indirectly, which bounces around like a ping-pong ball.
International Investing: iShares (US) dominates the international markets in terms of ETFs. You want something that is Canadian dollar hedged if possible.
Large Caps UK. This is a big issue with BREXIT in play. If you look at UKX-T you can see nothing has been gained from 2017 to 2019. He thinks it is very close to a time to invest in the British Pound. He prefers EWUS-T for smaller cap stocks because they have much higher upside. He is starting to nibble.