EWD: Healthy Macro Outlook, But Valuations Suggest Fair Positioning

The Alpha Sieve4.91K FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe iShares MSCI Sweden ETF (EWD) which completed 3 decades as a listed product currently focuses on 42 Swedish stocks, the bulk of which are large-caps.EWD could benefit from Sweden's comforting macro-outlook: accelerating GDP, low exposure to energy supply chain disruption, and a healthy consumer and industrial backdrop.However, EWD's valuations are now largely in line with its Nordic peers and the European region.Momentum signals are no doubt positive, yet long-term risk-reward appears unideal at current levels; value-focused investors may prefer to wait for a pullback. JulyVelchev/iStock via Getty Images Solid, But Not The Greatest Long-term Track Record The iShares MSCI Sweden ETF (EWD), a +$320M-sized passively managed ETF (it covers the MSCI Sweden 25/50 Index through representation sampling) that offers exposure to 42 Swedish stocks (two-thirds of which are This article was written byThe Alpha Sieve4.91K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.