Besides Spain, iShares MSCI Sweden Index (EWD) is another country-based exchange traded fund (ETF) that has withstood market volatility fairly well so far this year. It’s up 10.7% year-to-date. It also holds well-known, worldwide companies such as Volvo (VOLV) and H&M (HMRZF.PK).
Demand and employment continue to increase in the Swedish economy, according to the National Institute of Economic Research for Sweden. Strong sectors for July included the service industry and construction. In addition, Swedish consumers showed confidence in the economy during July. Another reason EWD has done so well is because it’s a fierce inflation fighter. However, inflation has increased recently over the last couple of months and is now approaching a rate of 3%.
For full disclosure, some of Tom Lydon’s clients own H&M.
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