Invest in the UK With This List of United Kingdom ETFs

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If you are an investor looking to gain exposure to a particular country or region, then a country-specific ETF may be the way to go. If that particular area is the United Kingdom, then you have some investing options.

Not only do country ETFs come with advantages such as the tax benefits and cost efficiency factors, but they also save you the trouble of acquiring equities and assets specific to that area.

There are ETFs that are specific to Europe if that is your interest, but if you prefer to focus on the UK to either take advantage of a market or hedge some risk for that country, then there are four United Kingdom ETFs to consider. Two of the funds are foreign currency ETFs and the other two are general UK specific funds. So make sure your research each fund and understand the differences.

List of United Kingdom ETFs

  • EWU - iShares MSCI United Kingdom Index ETF

This United Kingdom ETF tracks the MSCI United Kingdom Index (NDDUUK) and targets sectors such as financials, consumer staples, energy, and materials. Some of the top holdings in the find and the index are HSBC Holdings, VodaPhone Group, Glaxo Smith Kline, and Royal Dutch Shell. EWU has been actively trading since 1996.

  • FXB - Currency Shares British Pound Sterling Trust ETF

This is a currency fund that focuses on the British Pound, and according to CurrencyShares, it is designed to track the price of the British Pound Sterling net of Trust expenses, which are expected to be paid from interest earned on the deposited British Pound Sterlings.

EWU is sponsored and distributed by Guggenheim and has been actively trading since 2006.

  • GBB - iPath GBP - USD Exchange Rate ETN

Like FXB above, GBB is an ETN designed to track the price of the British pound in comparison to the U.S. dollar exchange rate. When the British pound appreciates relative to the U.S. dollar, the GBP/USD exchange rate (and the value of the ETNs) increases; when the British pound depreciates relative to the U.S. dollar, the GBP/USD exchange rate (and the value of the ETNs) decreases.

The exchange traded note has been trading since 2007.

  • FKU - First Trust United Kingdom AlphaDex ETF

This fund tracks the Defined United Kingdom Index and includes stocks from the S&P United Kingdom BMI universe that meet certain criteria. Some of those stocks include Sports Direct International, International Consolidated Airlines Group, Lloyds Banking Group, and Thomas Cook Group. And the top sectors represented are consumer staples, financials, industrials, materials, and energy.

  • GGBP - Gartman Gold/British Pound ETF

So there you have it. Two funds focusing on a variety of sectors in the United Kingdom and two funds (one an ETN), targeting the British Pound versus the US Dollar. And our newest addition, a Gold Fund in relation to the British Pound.

And as mentioned above, it is very important to understand the differences of each fund and how they work. Learn about what is in each ETF and which might be a good fit for your portfolio or investing strategy.

No investment is without risk. As an investor, you need to understand the downside as well as the upside. You would be wise to consult a financial professional such as a broker or advisor if you have any questions or concerns before making any trades.

But once you are ready, good luck in all of your UK trading ventures.

Be sure to check back to this list. If any of these funds are delisted or changed, it will be updated.

The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.