The Swedish central bank recently cut its benchmark rate below zero for the first time and started buying bonds to combat deflationary pressures. However, if the krona continues to strengthen, the Riksbank could be forced to implement more aggressive measures. [Loose Monetary Policy Could Lift Sweden ETF]
Riksbank expects the economy to expand 2.7% this year and 3.3% in 2016. Meanwhile, consumer prices could only inch up 0.1% in 2015, well below the central bank’s 2% target. [Rate Surprise in Sweden]
Including Nordic ETFs in portfolios “insulates them to some extent from the economic and financial-market fallout from the travails of eurozone countries, such as the recent crisis triggered by the drawn-out Greek debt drama. Rolf Lönnqvist, an ETF specialist at Swedish bank Nordnet, says having its own currency helped Sweden’s economy during that crisis,” according to the Journal.
Global X FTSE Nordic Region ETF