✅   EDEN: Ultimately A Bet On Novo Nordisk

Investing

With the monumental rise of Novo Nordisk (NVO), a once diversified Nordic ETF, the iShares MSCI Denmark ETF (BATS:EDEN) has become substantially a bet on the fortunes of one company. We don't necessarily scoff at Novo Nordisk's valuation, given that it at least provides a sink for their manufacturing investments. But there are general risks according to some commentators in terms of overextended growth expectations, possible competing drugs, and political risks. With PEs around 19x, and pressures outside of healthcare exposures on industrial spending as well, we don't see a runaway reason to buy the ETF. Importantly, the heavy skew has us questioning the logic of using the ETF over just investing in components, particularly when expense ...

seekingalpha.com     Jul 24, 2024