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Brexit playbook: 3 trades off the crashing pound

The U.S. dollar and the British pound are displayed as "out of stock" at a foreign exchange store in Kuala Lumpur, Malaysia, on June 24, 2016.
Manan Vatsyayana | AFP | Getty Images
The U.S. dollar and the British pound are displayed as "out of stock" at a foreign exchange store in Kuala Lumpur, Malaysia, on June 24, 2016.

The British pound is plunging versus the U.S. dollar Friday after the British people voted for the U.K. to leave the European Union. How can investors find protection and profit for their portfolios from this event?

Using Kensho, a hedge fund analytics tool, we looked at which liquid ETF securities performed the best when the pound (GBP) fell by 5 percent or more versus the dollar in one month.

So if the pound extends declines from here as the Brexit process plays out, these ETFs should see the biggest lift in value, if history is any guide.

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