Post-Brexit rebalance pushes financials in WisdomTree ETF to maximum level

Doubles exposure to consumer discretionary

WisdomTree's UK Equity Income UCITS ETF has been rebalanced to include a doubling of exposure to the consumer discretionary sector, while also increasing its financials weighting to the highest level permissible, in an attempt to capture as much market upside as possible following June's EU referendum.

Since the unexpected Brexit outcome on 24 June, many companies have benefitted from weaker sterling, which plunged to a 31-year low against the dollar, leading the FTSE 100 to hit a 10-month high in July. Meanwhile, the FTSE 250 erased all its post-referendum losses in August. In a bid to capture this upside, WisdomTree has now reduced exposure to areas of the market that have done well, while holdings in sectors that remain undervalued have been increased. In particular, the ETF's financials weighting has increased from 22% to 25%, the maximum weight any sector can have in the ind...