Nordic

Nordic mutual funds and ETFs invest in a wide range of asset... Nordic mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in countries that constitute the Nordic region including Sweden, Denmark, Finland, Iceland, Norway, the Faroe Islands, and Greenland. This region is characterized by significant social safety nets, high levels of taxation, and high levels of education. Services form the dominant share of this region’s total economic output. Several of these funds and ETFs can be actively managed as they require special knowledge of foreign markets and active management may increase the chances of generating a higher return compared to an index fund or passive ETF. The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. Investors looking to diversify their holdings outside of the U.S. markets and achieve better returns often own Nordic mutual funds and ETFs. Some of these funds, especially those focused on developed economies such as Norway, are appropriate for conservative-minded investors. Aggressive investors looking to take higher risk might prefer allocations to funds with more exposure to an emerging market economy such as Iceland, which offer the potential for higher returns. Irrespective of the type of investors, there is an inherent currency risk in these funds as a weaker foreign currency compared to the U.S. dollar could negatively impact investors. Last Updated: 04/18/2024 View more View less

Nordic mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in countries that constitute the Nordic region including Sweden, Denmark, Finland, Iceland, Norway,... Nordic mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in countries that constitute the Nordic region including Sweden, Denmark, Finland, Iceland, Norway, the Faroe Islands, and Greenland. This region is characterized by significant social safety nets, high levels of taxation, and high levels of education. Services form the dominant share of this region’s total economic output. Several of these funds and ETFs can be actively managed as they require special knowledge of foreign markets and active management may increase the chances of generating a higher return compared to an index fund or passive ETF. The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. Investors looking to diversify their holdings outside of the U.S. markets and achieve better returns often own Nordic mutual funds and ETFs. Some of these funds, especially those focused on developed economies such as Norway, are appropriate for conservative-minded investors. Aggressive investors looking to take higher risk might prefer allocations to funds with more exposure to an emerging market economy such as Iceland, which offer the potential for higher returns. Irrespective of the type of investors, there is an inherent currency risk in these funds as a weaker foreign currency compared to the U.S. dollar could negatively impact investors. Last Updated: 04/18/2024 View more View less