Country-Specific ETF That’s Been a Surprising Outperformer

iShares MSCI Denmark ETF (EDEN) is heavily weighted in healthcare (about 38%), with more than 18% of the fund being invested in pharma giant Novo Nordisk

Capital Ideas Media | June 8, 2021 | SmallCapPower:  We were intrigued to discover recently that a top-performing Canadian asset manager we know has invested a portion of his clients’ money into iShares MSCI Denmark ETF (EDEN).

(Originally published on Capital Ideas Media on April 20, 2021)

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Danish stocks have performed well over the past year, which is at least partially related to Denmark’s handling of the COVID-19 pandemic.

Last week, Denmark announced it would re-open its economy sooner than expected, as COVID infections have decreased significantly.

According to Reuters, Denmark has avoided a third wave of the COVID-19 epidemic after imposing wide lockdown measures in December, which slowed the epidemic considerably to between 500-700 daily infections from several thousands in December. Activities such as indoor dining, however, will require patrons to show proof of being given a COVID vaccination.

Would-be EDEN investors will own an ETF that is heavily weighted in healthcare (about 38%), with more than 18% of the fund being invested in pharma giant Novo Nordisk. The Demark ETF has also received top marks for its sustainable (ESG) investing.

EDEN ETF holders have realized an average annual return of about 15% over the past five years, with low relative volatility, and that momentum is expected to continue during 2021.

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