
Investors are always urged to diversify, but choosing how and where to place those bets can be challenging. For example, international stocks in general have lagged significantly behind their U.S. counterparts for years. And these days, investing in a broad basket of international stocks might mean buying stakes in companies based in areas threatened by war or in countries with little investor protection.
Luckily, there’s a foreign region that offers investors reduced geopolitical risks, well-regulated markets and attractive opportunities: The Nordics. This collection of five northern European countries — Denmark, Finland, Iceland, Norway and Sweden — account for only about 2% of the world’s economy and investable market, but the region has been punching far above its weight.