Carl Delfeld looks at the role politics can play on an economy, focusing on the exchange traded fund iShares MSCI Sweden (EWD) as an example. With an election on September 17th, campaign issues revolve around big changes such as deregulation, tax cuts, privatization and job creation. Many of Sweden’s big industrial companies are pushing for the change.
The ETF has been performing well this year, up over 16%. Leading up to election day, EWD is up 2% over the last two weeks. Ericsson, the top holding makes up 18% of the ETF, was the first to support the economic changes through the election campaign.
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