Checking In: A Look At The New Norway ETF

In this week's installment of "Checking In," we're going to have a look at another Global X fund. Hey, the firm has been prolific to say the least in the past year at introducing new ETFs and to Global X's credit, most of the new ETFs it brings to market seem to catch on with investors right off the bat. While Global X has experience with emerging markets ETFs, we're looking at a new ETF with a decidedly developed market bias today and that is the Global X FTSE Norway 30 ETF NORW, which made its debut on Nov. 9, 2010. Nordic markets aren't foreign to Global X as the firm brought investors the first ETF to offer combination exposure to Denmark, Norway, Sweden and Finland with the Global X FTSE Nordic 30 ETF GXF, which made its debut in August 2009. NORW has done well for itself in less than four months on the market, hauling in almost $22 million in assets and average daily volume is fair at nearly 42,000 shares per day. Since inception, NORW has tracked the S&P 500, but the two have diverged on a year-to-date basis with NORW lagging the S&P 500 by about 3%. That's just a small-knock on this 30-stock ETF, which actually represents a sound way for conservative investors to get some international exposure. Three reasons to like to Norway and NORW: 1) All those alarming headlines we see about Portugal, Spain, Greece, etc. mean next to nothing in Norway because the country (smartly) doesn't use the Euro. 2) Energy and basic materials, two market leadership groups, account for 40% of NORW's weight. Statoil STO is the top holding, making this ETF an indirect oil play. 3) Norway isn't faced with the inflation problems of so many emerging markets, but economic growth should be decent in the Nordic country in 2011. Bottom line: In the face of rising oil and inflation that is plaguing sexier emerging markets, NORW is a sound bet for participating in further upside for developed markets without taking on the risk of a Eurozone member.