ETFs investing in UK equities are down 2.9% over the last month after the fall of Sterling currency, lower-than-expected inflation data and the Bank of England’s hesitation to raise interest rates one year after Brexit.
Bond ETFs are off to a great start in 2017, and remain a crucial part of any portfolio. Investors are not scared off by interest rate hikes, even with several more planned for the rest of the year.
After a turbulent 2016, the new year is promising to be just as full of surprises and volatility. With this in mind, SPDR has issued an outlook for 2017, with three suggestions of how to navigate the current environment.