Last year’s Budget triggered a sell-off of UK investments by retail traders, and the recent strength of the dollar and historic underperformance is hitting confidence, new research from GraniteShares, a global issuer of Exchange Traded Products (ETPs) with more than $9 billion under management, shows.
The study with UK retail investors holding investment portfolios found one in four (26%) have cut their investments in the UK market in response to the most recent Budget, while 27% say the strength of the US dollar against other currencies is deterring them from investing in the UK markets.
It is not just recent events that are shaking UK retail traders’ confidence in UK markets – around 61% questioned say they are disappointed with the performance of UK markets in the past three years. That includes 24% who say they have switched investments to other markets as a result.
The FTSE-100 gained 5.72% last year and 3.8% in 2023 and nearly 1% in 2022. By contrast other markets roared ahead with the S&P 500 gaining 23.3% last year and the Nasdaq 28.6%.
Around 23% of UK retail traders estimate the percentage of their investment portfolio invested in UK stocks and funds has fallen in the past three years although a third (33%) estimate it has increased. However one in five (20%) expect to cut their level of investment in UK markets this year.
UK retail investors are still very much focused on UK markets – around one in five (19%) estimate that 50% or more of their investment portfolio is invested in UK stocks and funds.
Catarina Donat Marques , Head of European Retail Strategy at GraniteShares, said: “Economic news in the UK has been relatively downbeat over the past six months and last year’s Budget has been criticised by businesses.
The issues however go back further than just the last few months, with the UK stock markets underperforming versus the US one. That is recognised by retail traders who are cutting investments in the UK, despite the fact that investors tend to focus most on their home market.
There are still good opportunities in the UK market, and strong performers and success stories, for example Rolls Royce.
Our ETPs are designed for sophisticated investors and traders willing to invest tactically and with leverage on some of the most popular global stocks.”
GraniteShares offers a range of exchange traded products (ETPs) listed on national exchanges in the UK, Italy, and Germany. They consist of a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK, US and European markets.
UK Leveraged Single Stock ETPs
| Underlying stock | +3x Long | -3x Short |
| AstraZeneca | 3LAZ | 3SAZ |
| BAE Systems | 3LBA | 3SBA |
| Barclays | 3LBC | 3SBC |
| BP | 3LBP | 3SBP |
| Diageo | 3LDO | 3SDO |
| Glencore | 3LGL | 3SGL |
| Lloyds Banking Group | 3LLL | 3SLL |
| Rio Tinto | 3LRI | 3SRI |
| Royal Dutch Shell | 3LRD | 3SRD |
| Rolls-Royce | 3LRR | 3SRR |
| Vodafone | 3LVO | 3SVO |
US Leveraged Single Stock ETPs
| Underlying stock | +3x Long | -3x Short |
| Microstrategy | 3LMI | 3SMI |
| Coinbase | 3LCO | NA |
| Alphabet | 3LAL | 3SAL |
| Amazon | 3LZN | 3SZN |
| Apple | 3LAP | 3SAP |
| 3LFB | 3SFB | |
| Microsoft | 3LMS | 3SMS |
| Netflix | 3LNF | 3SNF |
| NIO | 3LNI | 3SNI |
| NVIDIA | 3LNV | 3SNV |
| Tesla | 3LTS | 3STS |
| Uber | 3LUB | NA |
Italian Leveraged Single Stocks ETPs
| Underlying stock | Long a leva | Short a leva |
| Intesa Sanpaolo S.p. a | 3LSP | 3SSP |
| UniCredit S.p.a | 3LCR | 3SCR |
Leveraged ETPs on the FTSE MIB Index
| Product | ISIN | Ticker |
| GraniteShares 5x Long FTSE MIB Daily ETP | XS2531767502 | 5MIB |
| GraniteShares 5x Short FTSE MIB Daily ETP | XS2531767767 | 5SIT |
Capital at Risk
GraniteShares ETP’s are only suitable for sophisticated investors.
