NORW: GLOBAL X MSCI NORWAY ETF
ETF Education Report: GLOBAL X MSCI NORWAY ETF (NORW)
What this ETF is trying to do
The GLOBAL X MSCI NORWAY ETF (ticker: NORW) is an exchange-traded fund that focuses on companies in Norway. It holds a variety of different stocks to provide exposure to the Norwegian market. Based on the top holdings provided, the fund includes companies like Equinor ASA and DNB Bank ASA. Please note that the list of holdings is partial, meaning these are just some of the largest companies in the fund, not all 61 holdings.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price change and any cash distributions (dividends) paid out.
For NORW, the numbers show growth over different time periods:
• Year-to-Date (YTD): The price return is approximately 18.23%, while the total return is approximately 26.03%.
• One Year: The price return was approximately 17.19%, and the total return was approximately 26.70%.
• Three Years: The price return was approximately 52.49%, and the total return was approximately 81.60%.
To give you an idea of price movement, the estimated price from roughly one year ago was $30.31. The current price is $35.52.
Income and distribution explanation
This ETF provides cash distributions to investors. The distribution yield is approximately 7.14%. This number describes the cash paid out relative to the current ETF price. It is important to remember that a high yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value. In the last 12 months, there were 2 payouts.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. Some investors worry about this when they see high distributions. However, for this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this fund.
Pros
• Strong Total Returns: The total return over three years has been quite high at approximately 81.60%.
• Income Potential: The fund has a high income rating grade of "A" with a distribution yield of approximately 7.14%.
Cons
• Irregular Payouts: The distribution frequency is described as "irregular" or "less frequent," meaning you may not receive cash on a predictable schedule.
• Partial Data: The holdings list provided is only a partial view of the full portfolio.
Beginner takeaway
The NORW ETF has shown significant growth in both share price and total return over the last three years. It also offers a notable distribution yield for those looking for cash income. Always remember to look at the total return—which includes dividends—rather than just the share price change to see how an investment has actually performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | EQUINOR ASA | n/a | 11.99% |
| 2 | DNB BANK ASA | n/a | 11.53% |
| 3 | KONGSBERG GRUPPEN ASA | n/a | 6.16% |
| 4 | AKER BP ASA | n/a | 5.04% |
| 5 | NORSK HYDRO ASA | n/a | 5.04% |
| 6 | MOWI ASA | n/a | 3.92% |
| 7 | TELENOR ASA | n/a | 3.71% |
| 8 | STOREBRAND ASA | n/a | 3.60% |
| 9 | SUBSEA 7 SA | n/a | 3.34% |
| 10 | YARA INTERNATIONAL ASA | n/a | 3.26% |