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Viking-Like Riches With These Awesome ETFs

You probably know the top economies in the world. The U.S., China, India…

But it might surprise you to know there’s a lesser known economy pumping major profits into folks pockets.

Sometimes being middle of the pack is all a steady income seeker needs to meet their financial goals.

And the 10th-largest economy, a collection of Northern European nations, might surprise you in how lucrative it can be.

Viking-Like Riches Await You

The economy I’m referring to is the Nordic region: Sweden, Norway, Finland and Denmark.

There is a lot more to the Nordic region besides cold weather and long summer nights.

It’s rich in natural resources (particularly oil), highly technologically advanced and home to many of the most successful companies in the world — including Nokia, Volvo, retailer H&M, and shipping giant Maersk.

And the Nordic region ranks among the most prosperous in the world.

The Legatum Prosperity Index ranks countries by wealth, economic growth, education, health care and quality of life. Four Nordic countries made the top 10 last year.

Sure, Nordic countries are known for their generous social safety nets, free colleges, generous pensions and universal healthcare.

But despite high taxes, generous social services and egalitarian income distribution, the 27 million people who live in the region enjoy a prosperity that few other places in the world enjoy.

Denmark, Norway and Sweden rank among the most globalized economies in the world and are consistently ranked as some of the easiest countries to do business in, according to Nordic Business Journal.

Each country has unique economic resources and specializations that drive its economies, as reported by the Foundation for Economic Education. These are as follows:

  • “Sweden is an export-focused economy focused on machinery, motor vehicles, paper production, pharmaceuticals and military armaments.” Sweden has a perfect credit rating and an enviable 41% debt-to-GDP.
  • “Norway’s economy has been historically focused on shipping and natural resources like crude oil, hydroelectric power and fisheries.” It too has a perfect credit rating and an astonishingly low 30% debt-to-GDP ratio.
  • Finland is primarily service-based but gets 30% of its GDP from manufacturing and oil. Debt-to-GDP is a reasonable 57%
  • Denmark is well diversified among services, manufacturing and oil/gas production in the North Sea. Denmark too has a perfect credit rating and a 44% debt-to-GDP ratio.

Sweden, the region’s largest economy, is expected to grow by 3% this year, fueled by one of the most accommodating central banks in the world. Meanwhile, its three Nordic neighbors enjoyed strong 2%-plus economic growth in 2017.

2017

Not only is the Nordic region on a reliable growth path, but it has three important benefits:

Low Correlation: The Nordic region has had a low correlation with the S&P 500 and important diversification.

Super Returns: The MSCI Nordic Countries Index has been one of the strongest-performing markets in the world.

Attractive Valuations: The Nordic region is a bargain, selling for only 16 times earnings, substantially below the S&P 500.

Your Best Bets For No Hassle Nordic Income Are…

There are two great ways to easily tap into the prosperity of the Nordic region.

Two of my personal favorites are the Global X FTSE Nordic Region ETF (NYSE: GXF) and Fidelity Nordic Fund (NASDAQ: FNORX).

You won’t strike it rich in a day with either of these funds.

Both are geared for capital appreciation and not high current income.

But for steady solid growth and income over the long term, it doesn’t get much better than these two options.

And for income investors focusing on long-term growth and gains these ETFs and others like them should be a staple of your income basket.

Here’s to growing your wealth,

Mike Burnick

Mike Burnick
Chief Income Expert, Mike Burnick’s Wealth Watch

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Mike Burnick

With over 25-years of professional investment experience, Mike Burnick was a Registered Investment Adviser and portfolio manager responsible for the day-to-day operations of a mutual fund. Mike joined Weiss Research in 2002 as an analyst and writer, and in 2008 was named Director of Research and Client Communications at Weiss Capital Management, where he assisted...

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