While most people are familiar with the New York Stock Exchange and the Nasdaq in the United States, there are other exchanges that demonstrate a low correlation to the US markets & offer interesting diversification opportunities. One such exchange is the Nasdaq Nordic, which includes the stock markets of Sweden, Denmark, Finland, and Iceland, while the Norwegian Exchange in Oslo is part of Euronext.
The Nasdaq Nordic is a well-established exchange that offers a diverse range of investment opportunities. Many investors may not be familiar with this exchange, but it is home to global companies, including Volvo and pharmaceutical giant Novo Nordisk A/S through to innovative small caps with plenty of growth potential. It certainly has a lot to offer. Here are some of the key reasons why you could consider investing in the Nasdaq Nordic:
Stable economies
The countries that make up the Nasdaq Nordic all have stable economies with high levels of economic freedom. They are also known for their strong welfare systems, which means that they have high levels of social equality. These factors help to create a stable business environment, which in turn makes the stock markets in these countries a good choice for investors.
Innovation and technology
The Nordic countries are known for their innovation and technology. They have a strong focus on research and development, and this has led to the creation of many successful companies in industries such as IT, healthcare, and renewable energy. Many of these companies are listed on the Nasdaq Nordic, making it an attractive exchange for investors who are interested in these sectors.
Strong corporate governance
The Nasdaq Nordic has a strong focus on corporate governance. This means that companies listed on the exchange are subject to strict regulations and oversight, which helps to ensure that they are run in an ethical and responsible manner. This is important for investors, as it helps to minimize the risk of fraud or other unethical practices.
Diversification
Investing in the Nasdaq Nordic can help to diversify your portfolio. By investing in companies from different countries and industries, you can spread your risk and reduce the impact of any individual company or sector on your portfolio.
Performance
Finally, the Nasdaq Nordic has a strong track record of performance. While past performance is no guarantee of future results, the exchange has consistently delivered strong returns to investors over the long term.
Our Investment Committee are experts in compiling high yielding, low volatility bespoke Nordic model portfolio's. If you are looking for a means of diversifying your holdings please get in touch to find out how we can help.
