iShares MSCI United Kingdom ETF [EWU]

The Bank of England recently hiked interest rates by 50 basis points, marking its biggest single rate increase since 1995.

Large caps and United Kingdom ETFs traded with an outsized volume on Friday.

United Kingdom country-related exchange traded funds strengthened Thursday after Boris Johnson announced his resignation as British prime minister, ending the latest round of political uncertainty gripping the country.

"Halftime Report" trader Pete Najarian spots unusual activity in the options market.

I have a position in British equities through EWU, but my outlook is only mildly optimistic. I view developed markets as a relevant hedge against U.S. equities, and I like the UK's lack of proximity to mainland Europe as a positive. Yet, there are headwinds as well.

The UK economy sustained a modest pace of expansion in June according to preliminary PMI survey data and also saw steady strong employment growth. Other forward-looking indicators also point to worsening growth in the coming months.

I was cautious on British equities heading into 2022. Looking back, this has been partially vindicated. While EWU has produced a very slight return, that actually compares well to a sharp decline in U.S. equities.

U.K. equities have generally underperformed their global peers consistently over the last decade.

U.K. stocks continue to outperform the rest of the world yet remain extremely undervalued on a relative basis as earnings and dividend growth continue to outstrip that of their peers.

U.K. Economic Growth Strong; Ukraine War Drives Price Rise, Dents Business Confidence