Traders trim top UK stock ETF holdings before Brexit vote
Investors’ retreat from the equity ETF marks a turnaround in sentiment after the fund saw steady inflows for most of 2018
London — Some investors didn’t want to take chances on UK stocks ahead of MPs’ historic vote on a Brexit deal. Britain’s biggest equity-focused exchange-traded fund (ETF) iShares Core FTSE 100 UCITS ETF saw an outflow of £470,000 on Monday, a day before UK parliament is set to reject Prime Minister Theresa May’s Brexit plan. This was the largest one-day redemption since February, according to data compiled by Bloomberg. Investors’ retreat from the equity ETF marks a turnaround in sentiment after the sterling-denominated fund saw steady inflows for most of last year, despite a negative 4% return, even during the global market turmoil at the end of 2018. “Surveys of fund managers show a distinct lack of interest, even concern, about UK equities at the start of the year,” said Andrew Milligan, head of global strategy at Aberdeen Standard Investments. “This may relate to Brexit uncertainty, but investors are also taking a more defensive posture toward European equities.” The FTSE 100 in...
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