I will explain in a simple way how to invest in Sweden, over the internet, and with low investment cost.
I’ve always had an attraction for this country since I was little. At home, I even had Swedish books to learn, dictionary and always enjoyed studying the history of Sweden. I do not know how it started, children sometimes get interested in some subjects and study them for themselves and with greater strength, such as dinosaurs, dogs, cats, astronomy, soccer, Formula One (F-1) among others.
When someone talks about “investing in the US” quickly you remember a thousand things about the US. You have more or less an idea already formed about what the US is and how it works, even if you are not correct. But what about Sweden, what do you know? Blonde and beautiful women? Yes.
The idea here is not to invest in marriage to Swedes but in Swedish companies, but if you want to marry a Swedish woman, know that they are unanimous among the Europeans themselves, I have European friends who live in other countries and they say that Swedish girls are the most desirable in Europe. Are you doubting? Look at tinder in Sweden:
Frugal, very nice: lots of beautiful women, and about the place? The place? Have you seen photos of Swedish cities and landscapes there? A very well kept country, well done in the smallest details. It looks like that place that came out of the fairytale books, takes a look at Stockholm:
Okay, but what do I need to learn about Sweden?
Let’s go to the good old Wikipedia:
” Sweden is a mixed economy oriented to export with a modern distribution system, excellent communication inside and outside and a work force very qualified. Hydropower, timber and iron ore constitute the resource base of an economy heavily oriented to foreign trade. Sweden’s engineering sector accounts for 50% of production and exports. The telecommunications, automotive and pharmaceutical industries are also of great importance to the country’s economy. The agriculture accounts for 2% of GDP and employment.
In terms of structure, the Swedish economy is characterized by a large manufacturing knowledge – intensive and export – oriented, a growing but relatively small, service sector of business, and, by international standards, a large public service sector. Large organizations both in manufacturing and in services, dominate the economy of Sweden. 
The 20 largest (by turnover in 2007) companies registered in Sweden are Volvo , Ericsson , Vattenfall , Skanska , Sony Ericsson Mobile Communications AB , Svenska Cellulosa Aktiebolaget , Electrolux , IKEA , Volvo Personvagnar , TeliaSonera , Sandvik , Scania , ICA , Hennes & Mauritz , Nordea , Preem , Atlas Copco , Securitas , Nordstjernan and SKF .  The Swedish industry is overwhelmingly under private control, unlike other Western countries industrialized , such as Austria and Italy , where public companies have traditionally utmost importance.
About 4.5 million people in the country are working, of which about a third have higher education . GDP per hour worked is the 9th highest in the world, with 31 dollars in 2006 , compared to 22 dollars in Spain and 35 dollars in the United States .  The GDP per hour worked has increased by 2½ percent per year for the economy as a whole and the growth of trade productivity is 2%.  According to the OECD , the deregulation , the globalization and the growth of industry technology were the drivers of productivity .  Sweden is a world leader in privatized pensions and problems of pension funds are relatively small compared to other countries in Western Europe . 
A typical Swedish worker receives 40% of your income after discounts made by taxes . The tax burden , which had a small overall decline, 51.1% of GDP in 2007, is still almost twice that of the United States or Ireland . The share of jobs financed by the amounts of income tax account for one third of Swedish workforce, a substantially higher proportion than in most other countries. Overall, economic growth has taken place since the reforms in the early 1990s , especially in the industrial sector . 
The World Economic Forum ranked Sweden as the 4th most competitive economy in the world in the Global Competitiveness Index 2009-2010.  In the Global Competitiveness Index 2010-2011, Sweden moved up two places and now ranks second in the world.  The country is ranked 6th in the IMD Competitiveness Yearbook 2009, high score in terms of private sector efficiency.  According to the book, ” The Flight of the Creative Class ,” by economist American , Professor Richard Florida of the University of Toronto , Sweden is ranked as having the best creativity in Europe for business and is expected to become A “magnet” talent for the most significant workers in the world. The book has drawn up an index to measure the kind of creativity it claims is most useful talent in business , technology and tolerance . 
Sweden maintains its own currency, the Swedish krona (SEK), the result of rejecting the Swedes to the euro in a referendum . The Riksbank Swedish ( central bank ) – he founded in 1668, making it the oldest central bank in the world – is focused on price stability with a target inflation of 2%. According to the Economic Survey of Sweden 2007 by the OECD , the average inflation in Sweden was one of the lowest among European countries since the mid- 1990s , largely because of deregulation and quick utilization of globalization.  flows trade are greater with Germany , the United States , Norway , United Kingdom , Denmark and Finland . “
That is to me Sweden has to do with currency stability (the Swedish Krone), political stability (it is a parliamentary monarchy), low inflation, efficiency, productivity, capitalism, free market and high innovation and creativity of its people.
The negative side I see is the high Swedish welfare and the high tax burden on the Swedish people, but it seems that the money is well invested and does not have so much waste or corruption.
Now let’s talk about the Swedish stock exchange, one of the oldest in the world. The Swedish stock exchange was recently bought by Nasdaq (and here you go) and already sells several ETFs and funds worldwide.
But what is the point of the turn of this post? Where’s the secret?
Beginning in December 2016 the sale of the OMXS ETF by iShares UK with a rate of only 0.1%!
I was very happy to see this new product there because ETFs in the Nordic countries are always expensive at rates higher than 0.5% per year and I have never seen them domiciled in Ireland. So this particular product is a very good opportunity to invest in Sweden, a good low-cost ETF, backed by the Swedish krona and with 85 stocks in the portfolio. And to improve, even more, it is accumulation (does not distribute dividends). I have already placed it in my portfolio and now it is only bought (for this I will use my broker Interactive Brokers).
You can check the full page of the ETF here: OMSX iShares UK
Cool huh? Until at last a dignified gateway to that country.
Nice Frugal! Beautiful, beautiful women’s country, cheap and affordable ETF, but what about returns, market history, revenues, growth and return for the investor?
I know there’s always a hurried one or two who wants to go to the central point, so check out the latest data:
Recalling that 2008 was down sharply as in many other markets as the world was going to end because of the sub-prime crisis. And keep in mind that inflation in Sweden is at most only 2% per year.
Now the Swedish index evolution on a graph that I generated by Google Finance:
The index rose 2.5x in 14 years.
Check it out in Stockholm while you think about it:
Now let’s talk more in the long term and how the Swedish market has behaved for the last 146 years, look closely at this table:
In the largest series running from 1870-2012, we are seeing 7.9% REAL gain annualized (ie, above the low Swedish inflation). This is higher than 6.7% SP500 for a period of time slightly above according to Siegel, gives almost 1.3% annual more considering the series.
You learned in this blog that stocks are a return for the long term and that the market will always rise. Look at the chart, note how the index return is much higher than Swedish bonds and how it always rises despite declines in crises.
Late afternoon in Stockholm.
Of course stock will always rise but also has its volatility inside, which you have to accept to invest, see the worst months and worst years of the Swedish stock market in the chart below, noting that for the long-term investor, buy the index after These huge falls will make your equity go up a lot in the long run, it’s that “buy in the falls” story.
Now let’s focus a bit more on the ETF that is chosen to invest in Sweden, the OMXS.
With an exposure to approximately 85% of the Swedish stock market, OMXS has the top holdings of almost 48% of its assets, most concentrated in the financial, industrial and consumer sectors. The other 75 companies account for more than 52% of the ETF, among these other 75 companies we have mid and small caps, which I think is good, this ETF is not just large caps, it’s like the Swedish VTI instead of being the VOO.
The current P / E ratio is at 17.73, the PB at 2.18, CAPE at 20.6 (against a CAPE of 26.4 from the US), so roughly speaking “it’s cheaper than SP500.” But do not think that you are the only smart person who knows this, EVERYONE KNOWS THIS, do not try to be smarter than anyone in any bag, there is no free lunch.
These indicators mentioned above make me think that taking money into account tomorrow and wanting to invest outside I would buy Sweden instead of USA. So it is good to have other options at low cost.
If you want you can search in Google what each of these companies does just to get an idea, look at the TOP 10:
The fund was launched in 2016, so you can not specifically see his return.
Liquidity may be low in the short term because the fund is new, but I believe that over time it will rise.
I’m here, the post was to show a little of the Swedish market, Sweden and this fund that I believe is a good opportunity for the Brazilian to invest abroad or even any citizen of the world with access to the London stock exchange.