It is a passive, single-country ETF that tracks an index of large- and mid-cap companies listed on the Swedish stock market. It concentrates exposure in one Nordic country, with a relatively heavy weighting in certain sectors such as industrials and financials.

It suits investors who want to focus on the Swedish market and can tolerate the volatility and currency swings that come with single-country, overseas investing.

It is an ETF managed by iShares using a passive (index-tracking) approach.

The fund tracks an MSCI index made up of large- and mid-cap companies listed on the Swedish stock market. Because it concentrates on one country, certain sectors such as industrials and financials carry a relatively large weighting. With exposure to a single country, its performance depends on the Swedish economy, policy and currency movements.

• Concentrated in a single country, Sweden
• Exposure centered on industrials and financials

Assets under management (AUM) stand at $1.1B, and the total expense ratio is 0.51% per year.

Compared with overseas ETFs that diversify across many countries, the main point of comparison is its concentration in Sweden alone.

Swedish stocks are driven by the global economy, industrial demand, currency movements and the European economy. They tend to show strength when the global economy is recovering and weakness when it is slowing. Because of the large industrials weighting, they react sensitively to trends in global manufacturing.

For single-country markets, fund flows diverge depending on global risk appetite, currency moves and the European economy. When interest in European and Nordic markets rises, capital sometimes moves into related product groups. It is also worth noting that performance varies with the global economy and currency variables.

Concentrated exposure to Sweden is both its strength and its risk, and single-country volatility, sector concentration and currency are the considerations to weigh.

For exposure to another single developed European country, direct alternatives include EWU for the United Kingdom, and products such as EWG for the German market are also worth comparing. For exposure to the Swiss market, a product such as EWL can also be considered. The three products shown in the table, EWU, EWG and EWL, all invest in a single developed European country and differ in the character of their target country and sectors. This ETF's differentiating factor is its concentration in Sweden alone.

Here are the points to review before investing in EWD. Concentrated exposure to Sweden is the appeal, but single-country volatility, sector concentration and currency should be checked in advance. It is also a good idea to compare it with diversified overseas products and other single-country products.

A global economic slowdown, weaker industrial demand and a weaker krona are the main variables for performance. Because the fund is concentrated in one country and certain sectors carry a large weighting, it is more volatile than diversified products. In a European recession, it could fall sharply.

It is a suitable candidate for investors who want to focus on the Swedish market. To invest in another single developed European country, consider products such as EWU and EWG, and if you want Swedish exposure, it is advisable to compare this product alongside them before choosing.