The United Kingdom national election held in early December ended with Boris Johnson’s Conservatives strengthening their majority. This means that the government enters 2020 with a strong mandate to finally complete the Brexit deal.
The British pound and U.K. stocks surged on the back of the election win.
Investors should consider the iShares MSCI United Kingdom ETF (NYSE:EWU) to start the year. This ETF seeks to track the investment results of an index composed of UK equities.
Shares of the ETF have climbed 15% over the past three months. It is well positioned to continue this momentum as the U.K. is on the brink of more clarity on the Brexit file.
Some of the top holdings in the ETF include HSBC Holdings, BP, Royal Dutch Shell, and British American Tobacco. Brexit talks are far from over, so investors should not expect clear sailing for the entirety of the year.
However, a deal looks closer than ever after the election. A limited U.S.-China trade deal, which is also close to being finalized, should also be positive for global growth.
This is an ETF that is worth targeting as we open the New Year. Investors should keep their eyes on Brexit negotiations that will have a huge impact on the U.K. markets and the British pound.
