The Nordic Region may present unique opportunities for US investors.
While the US markets for large and small-cap stocks continue to outperform their global counterparts, investors may be well served in the future by considering the diversification and growth opportunities offered by companies based in the Nordic region (Sweden, Norway, Denmark, Finland, and Iceland). In total, these countries generate economic activity that would make them the 12th-largest economy in the world if combined as a single economic unit. Strong, stable governance, deep commitments to education, long histories of technological innovation, and a focus on sustainability have been the hallmarks of these economies for many years. The Nordic countries have also demonstrated particular acuity in several key growth industries, including green technologies, IT infrastructure, natural resources, transportation, and healthcare, and may offer diversification of growth industries for investors that contrasts with the tech-heavy US markets. Many Nordic companies also cross-trade on the OTCQX, OTCQB, or OTCID Markets in the US, leveraging a regulated framework to connect with US investors.
The Nordic countries' commitment to public-private collaboration, strong public education and university systems, and broad-based research and development spending should also provide a solid framework for future growth. The Nordic countries continue to be among the global leaders in renewable energy deployments and innovation, with countries like Norway and Iceland generating roughly 100% of their electricity demand from renewables (versus approximately 30% in the US). The commitment of many Nordic institutional investors to ESG standards has led to many Nordic-based companies adopting ESG best practices. This trend contrasts with the decline in sustainability reporting by US companies, which decreased by 52% in the first half of 2025, according to one study1. This focus on governance and disclosure aligns closely with the tiered structure of the OTC Markets, which emphasizes transparency, compliance, and verified disclosure practices.
Valuations remain at the upper end of historical ranges in the US, but the Nordic region's markets trade at ranges between 13 and 21 times forward earnings. Given the focus of companies in this region on long-term trends such as decarbonization and advanced digital innovation, this could provide investors with valuable diversification at reasonable valuations.
Finally, while many of the G7 economies are facing debt-to-GDP levels at or above 100%, the tax policies and fiscal discipline of the Nordic countries have enabled them to keep their debt-to-GDP ratios much lower (ranging between 30-45% for Sweden, Norway, and Denmark). The relatively low levels of debt maintained by these countries limits the risk of inflation for these economies and could allow for greater government investment over the next decade.
Don't miss your chance to learn more about the Nordic economies and connect directly with Nordic growth companies.
Join Zacks Small Cap Research in New York City on October 8, 2025, at the OTCQX Market Center for Nordic Investor Day, featuring presentations, Q&A, and networking with management teams from across technology, energy, healthcare, digital assets, aviation, and more. Register here to secure your spot.
Presenting companies include:
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1 https://sustainabilitymag.com/news/sustainability-reports-are-they-now-a-thing-of-the-past