UK exchange traded funds have edged back into the green despite recent political upheaval yet inflows and performance have struggled to gain traction due to Brexit fears.
Stock market ETFs continue to be impacted as investors appear to be spooked by changing monetary policy and limited boost from White House economic incentives.
Investors have increased their holdings in short European equity ETFs by the highest amount for over a year. The recent rally in equities worldwide is sending some investors into contrarian positions, given the ongoing political risks threatening the stability of global stock markets.
After months of strong outflows, the fortunes of European equities were finally reversed in June, with the asset class seeing inflows for the first time despite the looming threat of the referendum on the UK’s membership in the EU, and the subsequent Brexit vote.