Alexandra PankratyevaThe US stock market, the UK’s departure from the EU, crypto bloom and gloom, oil price swings and FAANG performance – these traditional newsmakers and trend-setters draw investor attention on a daily basis. Searching for new pastures? Try going Dutch.
Why invest in Dutch stocks?
The Dutch stock market has long attracted international investors due to the country’s political and economic stability, transparent legal system, low corporate taxes and efficient capital markets. What else makes the Netherlands an attractive investment playground?
Reason #1. The Netherlands is the world's second most innovative country.
According to the Global Innovation Index (GII), the Netherlands is ranked 2nd among the 126 estimated countries. The GII measures environmental initiatives, business and infrastructure in relation to innovation.
The Netherlands is deeply committed to environmental protection (it supports 3D printed houses and air-cleaning bikes) and has implemented an ambitious plan to cut CO2 emissions by 95%.
Today, the Netherlands is an industry leader in wind energy infrastructure. Reliant on this renewable source to cover its energy needs, the Netherlands is considered synonymous with a windmill. According to Eurostat's data, the Netherlands wind capacity is 3,431MW, which is one of the highest scores in the European Union.
Reason #2. The Netherlands is a strategic location for international business.
The Netherlands provides a strategic location in which to do business for companies across Europe, Africa and the Middle East. Its location, together with outstanding infrastructure, makes the Netherlands home to many American, European and Asian companies.
The Netherlands has a well-deserved reputation as one of the top “networked” countries, providing unlimited opportunities for e-commerce solutions, outsourcing and communications. Having invested in the latest digital communication systems and high-speed internet, the country established an ideal basis for the development of technological sector.
Reason #3. The Netherlands provides a wealth of investment opportunities.
Economic growth and a high standard of living make the Netherlands a unique marketplace full of diverse investment opportunities. Here you can find a bunch of successful companies whose shares have shown positive growth over the last few years: from banking and insurance companies to wholesale food and technology providers.
The latest performance of the AEX 25 – the Netherlands 25 index – may be considered as a great indicator of the sound development of the Dutch market. Consisting of the 25 most liquid and capitalised stocks, the AEX is one of the key national indices of the Euronext group.
Now you have the exciting opportunity to trade shares of the most innovative and successful Dutch companies in one place. At Capital.com, we’ve been gradually extending our offering and have added a list of popular Dutch markets that may draw your attention.
Here’s an indicative list, just to name a few:
Name | Sector | Profile |
Oil & Gas | Shell is one of the six oil and gas ‘supermajors’. It was ranked the 20th biggest company in the world in 2017 (and the largest based in Europe) by Forbes. | |
Banking | ING Groep employs 51,000 people working across 40 countries. Fortune Global 500 named ING as the world’s largest financial/banking services company. | |
Wholesale food | A Dutch-British multinational manufacturer of consumer goods such as food, home and personal care products, detergents and fragrances. 2.5 billion people around the world use Unilever products daily. | |
Semi conductors | ASML Holding N.V. develops and supplies advanced semiconductor equipment systems primarily in the Netherlands, the United States, and Asia. | |
Heineken | Beverage | Founded in 1864, Heineken is a world’s famous Dutch brewer. The company operates over 165 breweries in 70 countries. |
