Brexit is the biggest challenge for this ETF

Article Excerpt

The United Kingdom has one of the largest economies in Europe and is among the world’s top 10. However, over the near term, it faces major challenges. This includes Brexit and the prospect of leaving the European Union without clear arrangements to protect its vital trading links. Better days will certainly arrive again for the U.K., but investors may have to wait until the uncertainty clears. Here is one ETF that provides exposure to the top public companies in the U.K. ISHARES MSCI UNITED KINGDOM ETF $30.10 (New York symbol EWU; TSINetwork ETF Rating: Aggressive; Market cap: $2.13 billion) invests in publicly listed U.K. companies. Financial firms account for 21.2% of the ETF’s assets, while Energy (19.5%), Consumer Non-Cyclicals (16.5%), Healthcare (9.5%), Industrials (8.9%), Consumer Cyclicals (8.7%) and Basic Materials (8.1%) are other key segments. The ETF holds a portfolio of 102 stocks; the top 10 make up 46.8% of its assets. Top holdings include HSBC Holdings (financial services; 7.1%), Royal Dutch…