Six of the best US ETFs
14 Aug 17
Passive funds have enjoyed a stellar time in the US as valuations ride higher and higher. Here, IG Group’s Oliver Smith looks at the six best ETFs to access booming US markets.
Smith said sterling investors should consider whether the returns generated by a weakening pound will reverse over the next few years.
For example, in 2016 the S&P 500 was up by 12% in USD but a huge 33.6% in GBP terms. Currency hedged ETFs will protect against such a scenario, he said.
“With Sterling looking cheap against recent history, having some GBP-hedged exposure to the US to protect portfolios against a possible weakening of the dollar is becoming more popular.
“iShares S&P 500 GBP Hedged recently lowered its TER to 0.2%, making it a low cost way to get this exposure.”
Tags: ETF | Investment Strategy | Passive Investing | US
