From Tokyo to Oslo: Country ETFs Are Running Hot as Global Markets Ride Policy Shifts and AI Buzz

In early 2026, global investors are acting a bit like curious travelers—scanning the map, picking their destinations, and placing their money where the outlook looks clearest.Instead of buying “the whole world” and hoping for the best, many are zooming in on specific countries where inflation is cooling, governments are signaling clearer plans, and growth engines—especially AI and semiconductors—are roaring.That’s a big reason why country ETFs (exchange-traded funds focused on one nation’s stock market) have been drawing attention.

One headline trend stands out: several country-focused ETFs are hovering near their 52-week highs at the same time. This reflects a “stock-picker’s market,” but on a national level—investors are rewarding the places where the story looks strongest right now.

Source context: This article is a detailed English rewrite and expansion of the Benzinga report published January 27, 2026. You can read the original reporting here:Benzinga – From Tokyo To Oslo, Country ETFs Are Running Hot.

What’s a Country ETF—and Why Are People Buying Them Now?

A country ETF is a fund you can buy and sell like a stock that holds a basket of companies primarily tied to one nation.For example, a Japan country ETF holds major Japanese stocks; a Norway country ETF holds Norwegian companies; a Turkey country ETF holds Turkish firms, and so on.

Investors often turn to country ETFs when:

• Economic cycles diverge (one nation is cutting rates while another is still fighting inflation).
• Policy clarity improves (markets like predictable rules, even if they aren’t “perfect”).
• A powerful theme concentrates in one place (like AI supply chains in parts of Asia).
• Currency moves matter (a strengthening or weakening local currency can lift or drag returns for foreign investors).

In 2026, those conditions are lining up across several markets at once—creating pockets of momentum that show up clearly in country ETF prices.

The Country ETFs Near Their 52-Week Highs

Benzinga highlighted several country ETFs trading close to their one-year peaks, a sign that investors are actively bidding up those markets.

Norway: Energy, Commodities, and Calm Monetary Signals

iShares MSCI Norway ETF (ENOR) was around $31.20 on January 27 versus a 52-week high near $32.76.
Global X MSCI Norway ETF (NORW) was around $32.42 versus a 52-week high near $32.59.

Turkey: Disinflation Hopes and Rate-Cut Expectations

iShares MSCI Turkey ETF (TUR) was around $39.54 versus a 52-week high near $39.95.

South Korea: Semiconductors, AI Memory, and a Breakout Stock Index

iShares MSCI South Korea ETF (EWY) was around $121.57 versus a 52-week high near $121.85.

Japan: Politics, Policy Expectations, and a Brighter Growth Forecast

iShares MSCI Japan ETF (EWJ) was around $85.53 versus a 52-week high near $85.99.

Why This Is Happening: The Big Global Setup

Before we dig into each country, it helps to see the bigger picture. Global equities entered 2026 with momentum:

• The MSCI World Index gained about 2.4% year-to-date after climbing roughly 19% in 2025.
• The iShares MSCI ACWI ex U.S. ETF (ACWX) was up about 5.2% YTD, beating the SPDR S&P 500 ETF (SPY) at roughly 1.6% YTD in the same snapshot.
• Emerging market exposure also looked strong, with iShares MSCI Emerging Markets ETF (EEM) up more than 6.5% YTD in that report.

When the “average” global fund is rising, investors often get more confident about taking targeted bets—like picking individual countries where the upside story feels even stronger.

Reason #1: Norway’s “Steady Hands” Policy Message Supports Risk-Taking

Norway’s appeal is partly about stability. Norges Bank kept its policy rate unchanged at 4% at its December 2025 meeting and indicated that, if the economy evolves broadly as expected, the policy rate could be reduced further over the coming year.

That kind of guidance can matter a lot. Markets don’t just react to today’s rate—they react to what they think will happen next.When investors believe a central bank is closer to easing than tightening, equities often benefit because future borrowing costs may fall and economic activity may get support.

Norway also sits in a world where commodities still matter. Many Norwegian market heavyweights are linked to energy, shipping, and resource-related activity.When commodity fundamentals look solid and policy feels predictable, a Norway-focused ETF can become a simple way to express that view.

Reason #2: South Korea’s AI-and-Chips Surge Is Not Just Hype

South Korea’s equity story has been heavily driven by semiconductors, and in 2026 the semiconductor narrative is tightly connected to AI.In January 2026, South Korea’s KOSPI crossed the 5,000 level for the first time—an attention-grabbing milestone that signaled strong momentum.

The logic is straightforward: AI needs powerful chips, and powerful chips need advanced memory.Two names often mentioned in this context are Samsung Electronics and SK Hynix, which are deeply tied to high-bandwidth memory (HBM) and related components.Reuters reporting around this time also underscored how strong AI-driven memory demand has been for major players like SK Hynix.

For ETF investors, EWY functions like a “one-ticket” entry to this national story.Instead of guessing which single company will win the most, investors can get broad exposure to the market that is benefiting from the theme.

Important reality check: Korea’s rally can be fast—and sensitive

Semiconductor-led markets can swing quickly because they are tied to global demand cycles and sometimes geopolitics.If AI demand slows, if inventory builds, or if trade restrictions expand, Korea-focused ETFs may react sharply.The same concentration that makes them exciting can also increase volatility.

Reason #3: Japan’s Policy and Political Momentum Is Back in Focus

Japan’s market has been lifted by a blend of political developments and shifting expectations about economic policy.Benzinga noted that Japan’s Prime Minister Sanae Takaichi dissolved the lower house on January 23, setting up a snap election on February 8, and that the prospect of bolder fiscal policy helped support risk sentiment.

On top of politics, Japan’s central bank outlook also mattered.Around this period, reporting noted the Bank of Japan raised its growth forecast for the fiscal year ending March 2026 to about 0.9% (up from 0.7%) and projected around 1% growth for the following fiscal year.

For investors, a better growth forecast can be like oxygen: it suggests company revenues and profits may have a stronger foundation.Combine that with the global AI excitement and improving sentiment, and it becomes easier to see why Japan’s country ETF EWJ moved close to its highs.

Reason #4: Turkey’s Disinflation Trend Is Changing the Conversation

Turkey is a different kind of story—often higher risk, but sometimes high potential.A key driver mentioned in the Benzinga piece was the visible slowdown in inflation, which can restore confidence and support expectations of a rate-cutting cycle.

Data reported by Trading Economics showed Turkey’s annual inflation rate easing to about 30.89% in December 2025, the lowest since November 2021.Reuters coverage around late January 2026 also discussed expectations that the annual inflation rate could continue to slow, while noting that monthly inflation could still be jumpy due to wage adjustments and seasonal pricing.

For a market like Turkey, the direction of inflation is a big deal. When inflation is accelerating, it can eat real returns and increase uncertainty.When inflation is decelerating—even if it remains high—it can signal that the worst may be over and that policy could become more predictable.That shift can attract investors who are willing to accept volatility in exchange for possible upside.

Reason #5: Investors Are Treating 2026 Like a “Country-Picker’s” Market

A core idea in the original report is that early 2026 looks like a market where investors reward specific places with clearer paths:inflation peaking, policy clarity improving, or growth drivers strengthening.

In plain language: instead of asking, “Will stocks go up?” investors are asking, “Where will stocks go up the most, and why?”Country ETFs make that strategy easy because they package a national story into a tradable product.

Reason #6: AI Buzz Is Acting Like a Global Tide—But It Lifts Some Shores More Than Others

AI is global, but the supply chain is not evenly spread.Some countries have outsized roles in:

• Memory chips (critical for AI training and inference at scale)
• Advanced manufacturing and tech exports
• Robotics and automation ecosystems

When AI demand rises, the biggest beneficiaries may be concentrated in specific national markets.That concentration is one reason country ETFs—especially those tied to chip powerhouses—can look “hot” quickly.

Reason #7: Relative Performance Is Pushing Investors to Look Beyond the U.S.

Another subtle force is performance comparison.When non-U.S. equity funds outperform U.S.-only benchmarks in the early part of a year, attention shifts.The Benzinga snapshot showed ACWX rising faster than SPY over that early-2026 window.

That doesn’t mean the U.S. is “bad.” It simply means global investors may feel they can get better value or stronger momentum elsewhere—at least for now.Country ETFs become the tools investors use to express that shift.

Key Risks to Understand Before Buying Country ETFs

Country ETFs can be convenient, but they are not risk-free. Here are the big risks, explained simply:

Currency risk

If you buy a country ETF in U.S. dollars, your returns are affected by the local currency.Even if the local stock market rises, a weakening currency can reduce your gains (or increase losses).

Policy surprises

A “policy clarity” story can change quickly. Elections, unexpected regulations, or surprise central bank moves can shift sentiment overnight.

Sector concentration

Many country ETFs are dominated by a few sectors:Norway can be commodity-linked; South Korea can be tech-and-chips heavy; Turkey can be sensitive to financial conditions.Concentration can magnify both upside and downside.

Liquidity and volatility (especially in emerging markets)

Some markets can move sharply, especially during global risk-off moments.If global investors suddenly want safety, emerging-market country ETFs may drop faster than broad developed-market funds.

How Investors Are Using Country ETFs in 2026

Investors tend to use country ETFs in a few common ways:

• Tactical tilts: adding short-to-medium term exposure to a strong country trend (like AI-linked Korea).
• Diversification: reducing reliance on one region by adding Japan or Norway exposure alongside U.S. stocks.
• Theme targeting: using a country ETF as a “theme proxy” (e.g., semiconductors via South Korea).
• Macro positioning: aligning with expected rate cuts or disinflation cycles (like the Turkey narrative).

FAQs About Country ETFs and the 2026 Global Rally

1) Are country ETFs safer than buying individual foreign stocks?

They can be less company-specific because they spread risk across many firms, but they still carry country-level risks like currency swings and policy changes.

2) Why do 52-week highs matter?

A 52-week high is a simple signal that prices are strong compared to the last year. It can reflect momentum and improving sentiment, though it doesn’t guarantee future gains.

3) What is driving South Korea’s strength right now?

Strong demand tied to semiconductors and AI-linked memory has supported the market, and South Korea’s KOSPI crossing 5,000 highlighted that momentum.

4) Why does Norway look attractive to some investors?

Norway has benefited from a stable policy message—Norges Bank kept its policy rate at 4% in December 2025 and suggested cuts could come over the next year if conditions evolve as expected.

5) Is Turkey’s market rally mainly about inflation falling?

Inflation trends are a key part of the story. Turkey’s annual inflation eased to about 30.89% in December 2025, which helped support expectations of improving macro stability—though risks remain and monthly inflation can still be volatile.

6) How does Japan’s outlook connect to its ETF performance?

Japan’s market has been supported by shifting policy expectations and political developments, and the Bank of Japan’s upgraded growth forecasts helped reinforce optimism.

Conclusion: Why “From Tokyo to Oslo” Is More Than a Catchy Line

The phrase “From Tokyo to Oslo” captures what investors are doing in 2026: scanning the world for places where the mix of policy, inflation trends, and growth drivers looks most attractive.Norway’s stability story, South Korea’s AI-and-chip surge, Japan’s renewed policy momentum, and Turkey’s disinflation hopes show how different the paths can be—and why country ETFs are becoming a popular way to trade those differences.

Still, the same forces that push country ETFs toward 52-week highs—momentum, optimism, policy expectations—can reverse if the narrative changes.Investors who understand the story behind each market, and the risks that come with it, will be better prepared to navigate whatever comes next.

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