Five Developed Market ETFs To Cozy Up To

In broad terms, the performance of emerging markets ETFs thus far in 2011 has been questionable to put it kindly. That may change later this year, but investors looking to deploy some cash on an ex-U.S. basis have plenty of options with more stable markets, some of which have seen their corresponding ETFs generate tidy returns in recent months. Let's take a look at a few developed market ETFs that have either gone ignored or have the potential for some stellar returns going forward. 1) iShares MSCI Sweden Index Fund EWD: The Professor highlighted EWD on Aug. 9, 2010 in a piece called "Take A Chance On Sweden" when the ETF was trading in the $27-$28. EWD is now pushing $32. No, you're not going to get a 10% GDP increase out of Sweden, but growth in the home of Abba is steady, inflation is benign and Swedes don't use the Euro. 2) Global X Norway 30 ETF NORW: We highlighted NORW in a our "Checking In" segment last week, making a similar case for this ETF as we just did with EWD. Remember, Norway is an oil producer and NORW is heavily weighted to energy, making this an interesting idea for some energy exposure. 3) Guggenheim Canadian Energy Income ETF ENY: Speaking of energy, ENY is certainly a play on that theme and given that it focuses on companies with exposure to the flourishing Canadian oil sands region, this is not an ETF that will expose one to far-flung, risky locales such as Africa or the Middle East. ENY has risen along with oil price so the yield has diminished to 2.72%, but that's still better than most cash investments. 4) iShares MSCI Netherlands Investable Market Index Fund EWN: EWN is another one we've beaten the drum on in the past. Sure, the Netherlands is an EU member, but it is one of the more sturdy constituents of that motley crew. EWN is up nearly 27% in the past six months with none of the heartache associated with comparable ETFs tracking PIIGS countries. 5) iShares MSCI Israel Capped Investable Market Index Fund EIS: On this list, EIS is the speculative play. A look at the chart shows the ETF could go either way from a technical standpoint and the recent events in the Middle East give investors pause about investing in Israel and rightfully so. Israel's graduation from emerging market to developed market has hindered EIS to some degree, but a pull back to $53-$54 could be a buying opportunity.