The OP-Nordic Countries Index Fund offers a cost-effective way to invest in the 70 largest listed companies in Finland, Sweden, Norway, and Denmark, making it a good addition alongside actively managed equity and bond funds.
In an index fund, the fund's assets are invested to track the performance of a given group of stocks, or market index. The OP-Norther Countries Index fund tracks the MSCI Nordic Countries Screened 20–35 index. Index funds are a form of passive investment, which means that the portfolio manager does not select stocks independently but instead tracks the movements of the selected index. Dividends from stocks are automatically reinvested into the fund. When investing in a specific geographical area, it is good to consider the risk associated with a single market. You can reduce its impact by investing simultaneously in several index funds.
Our view is that companies that act sustainably hold a competitive edge in the long term. For this reason, the fund tracks an index that is committed to maintaining a 30 per cent lower carbon intensity compared to the parent index. Additionally, the index excludes companies whose revenue depends on the production of coal or controversial weapons, among others.