How to Bet on Brexit Using ETFs

The video discusses how to bet on Brexit using ETFs, focusing on the iShares UK ETF (EWU) and its market trends. It highlights the increased short interest in EWU, suggesting market speculation around Brexit. The video also explores different ETF strategies, including currency-hedged options, and the impact of Brexit on European ETFs. It concludes by examining the volatility and performance of ETFs in relation to political events and market uncertainty.

What is the primary focus of the iShares UK ETF (EWU) in the context of Brexit?

• It is a bond ETF.

• It is the most popular way to bet on Brexit.

• It focuses on shorting the pound.

• It invests in emerging markets.

Which ETF is designed to benefit from a weak pound by going long on exporting stocks?

• Vanguard Europe ETF

• Eurozone ETF

• iShares UK ETF (EWU)

• WisdomTree Currency Hedged UK ETF

What is a common misconception about European ETFs in relation to Brexit?

• They are not affected by Brexit.

• They are heavily invested in the US market.

• They have significant UK exposure.

• They have no exposure to the UK.

How does the performance of ETFs relate to the actual outcome of Brexit?

• It is mostly influenced by polling and uncertainty.

• It only depends on the UK stock market.

• It is directly correlated with the outcome.

• It is unaffected by Brexit.

What is the weighting of the UK in the Vanguard Europe ETF?

• 0%

• 50%

• 10%

• 27%