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Getting Sweet on the Sweden ETF


Exchange traded funds tracking European equities, both the diversified and single-country varieties, have been receiving ample attention in recent months and deservedly so.

Inflows have been robust and some country-specific Europe ETFs are delivering impressive performances. Even the major ETFs tracking formerly downtrodden stocks in peripheral European nations such as Italy, Portugal and Spain have perked up this year. [Italy ETF Looks Good]

That does not mean investors should ignore more conservative Northern European offerings such as the iShares MSCI Sweden ETF (EWD) . EWD is up 1% this year, a performance that is middling among the five ETFs specific to Nordic countries, a group that includes two Norway ETFs as well as Denmark and Finland funds in addition to EWD.

Still, the $511.3 million EWD, the lone Sweden ETF, could hold some allure as a swing trade.

EWD “has been consolidating in a tight range on the monthly chart over the past year. The past six months have been very tight, with the action hovering around the monthly downtrend line while holding above the 10-month,” according to Deron Wagner of Morpheus Trading Group.

Wagner notes that although EWD looks good on its monthly chart, “it still needs to breakout in order to generate a buy entry.”

Earlier this month, EWD crossed above its 50-day moving average after a brief dip below that line. The ETF resides 1.6% above its 50-day moving average and nearly 6% above its 200-day line. EWD is also a decent yield play with a  trailing 12-month yield of 3.63%, according to iShares data.

iShares MSCI Sweden ETF

ETF Trends editorial team contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.