Checking In: Oslo Here We Come

Since the melodrama that is fiscal life for Europe's PIIGS started in earnest in 2010, one region of Europe has stood head and shoulders above the rest when it comes to being a safe haven for investors and a shinning star in terms of generating alpha: The Nordic region.

Of course, Iceland is to be excluded from the conversation, but when it comes to ETFs offering exposure to that country, pickings are slim. It's Sweden and Norway that are the real Nordic superstars and that's why we're going to “check in” with the Global X Norway ETF (NYSE: NORW).

With a reasonable expense ratio of 0.5%, which is lower than many of Global X's other funds and a better deal than plenty of emerging markets funds out there, NORW made its debut in November 2010 and is off to a banner start in terms of attracting assets, having accumulated almost $63.5 million in assets under management.

That asset haul speaks to investor demand for ex-U.S. developed markets fare through the first few months of 2011, but the Nordic countries, and by virtue, NORW, have not been immune to the recent slump in global equity markets.

NORW holds 30 and has been hit by the double whammy of a swoon for international markets and heavy energy sector exposure. In fact, Statoil (NYSE: STO), Norway's largest oil company, is also NORW's largest holding at 22.44% of the ETF's weight while energy names account for almost 42% of the ETF's sector allocation.

In other words, while an ETF focusing on Norway probably offers less risk at the moment than an Italian or Spanish dish, NORW's oily feel ensures there is high-beta potential, for better or worse.

Still, the oil exposure is probably the worst thing that can be said of NORW and that's the nature of the current market environment. Looking at the chart, support appears firm at $15.50 for NORW, indicating investors can take a nibble here and set themselves up for a run to $18-$19 over the next few months.