{"id":333752,"date":"2026-03-13T09:00:00","date_gmt":"2026-03-13T09:00:00","guid":{"rendered":"https:\/\/northern.finance\/bonus\/heres-how-to-replicate-the-norwegian-government-pension-fund-using-etfs\/"},"modified":"2026-05-13T13:07:22","modified_gmt":"2026-05-13T13:07:22","slug":"norwegian-government-pension-fund","status":"publish","type":"post","link":"https:\/\/northern.finance\/en\/etf\/norwegian-government-pension-fund\/","title":{"rendered":"Here\u2019s how to replicate the Norwegian Government Pension Fund using ETFs!"},"content":{"rendered":"\n

The Norwegian sovereign wealth fund, officially known as the Government Pension Fund Global (GPFG), is one of the world\u2019s most successful funds and now manages over US$2 trillion (as at 31 December 2025). With its broad range of asset classes, spanning global equity markets, bonds and property investments, the fund consistently delivers impressive returns, thereby securing a sustainable pension provision for future generations in Norway. In this article, we take a closer look at the fund\u2019s performance and show you, as an investor, how you can replicate the Norwegian sovereign wealth fund\u2019s portfolio using just five ETFs.<\/p>\n\n\n\n

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In brief:<\/strong><\/p>\n

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  • The Norwegian Government Pension Fund achieves an average annual return of 6.64%, which contributes to the population\u2019s retirement provision.<\/li>\n
  • At 71%, equities account for the largest share of the fund\u2019s assets.<\/li>\n
  • Investments in renewable energy infrastructure are expected to yield an above-average return of 18% by 2025.<\/li>\n
  • Investors can replicate the portfolio of the Norwegian pension fund using just five ETFs, thereby investing in their retirement provision at a low cost.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n

    The Norwegian Government Pension Fund: Returns for the previous year (2025)<\/h2>\n\n\n\n

    The Norwegian Government Pension Fund\u2019s<\/strong> performance last year was certainly impressive. We have taken a closer look at the 2025 annual accounts<\/strong> and calculated the specific return figures. <\/p>\n\n\n\n

    Last year, the Norwegian Government Pension Fund generated a return of no less than 15.1%<\/strong> for the population\u2019s retirement provisions. <\/p>\n\n\n\n

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    The breakdown of returns by asset class: <\/strong><\/p>\n\n\n\n

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    • Shares: 19.3% <\/li>\n\n\n\n
    • Fixed-income bonds: 5.4%<\/li>\n\n\n\n
    • Non-listed property: 4.4%<\/li>\n\n\n\n
    • Unlisted investments in renewable energy infrastructure: 18.1%<\/li>\n<\/ul>\n\n\n\n

      The fund\u2019s equity allocation<\/strong> stands at 71.3%<\/strong> \u2013 a figure I consider favourable, although I believe it could be increased further. Bonds <\/strong> account for 26.5%.<\/strong> The smallest allocation is to non-listed property and investments in renewable energy infrastructure, which together account for 2.1%.<\/p>\n\n\n

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      \"\"<\/figure>\n<\/div>\n\n\n

      Since its inception in 1998, the Norwegian Government Pension Fund has achieved an average return<\/strong> of 6.64%. <\/strong> That is a 0.74% increase in returns compared with 2020, demonstrating just how well things have gone in recent years. <\/p>\n\n\n\n

      The following chart shows the annual return as a bar chart. It is clear from this that positive returns were achieved in most years. At the same time, the volatility of the average return<\/strong> (blue line) has decreased<\/strong> over the years. The performance of the Norwegian sovereign wealth fund is therefore becoming increasingly reliable. <\/p>\n\n\n

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      \"\"<\/figure>\n<\/div>\n\n\n

      We\u2019ll now take a look at the fund\u2019s key drivers and inhibitors of returns, and explore how you can replicate the Norwegian sovereign wealth fund using ETFs<\/strong> to secure your retirement savings. <\/p>\n\n\n\n

      Norwegian Government Pension Fund: Equity Performance<\/h3>\n\n\n\n

      Through its equity investments, the Norwegian pension fund invests in the world\u2019s largest companies, holding substantial stakes in some of them. The fund has invested just under US$57 billion in NVIDIA<\/strong>, representing 1.26% of the company\u2019s total value. <\/p>\n\n\n\n

      Other companies include Apple, Microsoft, Amazon and TSM<\/strong>, in which the Norwegian sovereign wealth fund also holds a stake of more than 1%, as illustrated in the chart below.<\/p>\n\n\n\n

      \"\"<\/figure>\n\n\n\n

      Markets outside the US, particularly China, Switzerland, Taiwan and Canada, also delivered strong returns last year. Another interesting point for all ETF investors is that the US is significantly underweighted at 54.7%<\/strong> compared with one of the best-known ETFs, such as the MSCI World, in which the US currently accounts for 71%.<\/p>\n\n\n\n

      The sovereign wealth fund is also underweight <\/strong> in emerging markets<\/strong>: China, the world\u2019s second-largest economy, accounts for just 3.6% of the fund.<\/strong> In my view, that is a mistake. European markets, on the other hand, are much more strongly represented. <\/p>\n\n\n\n

      \"\"<\/figure>\n\n\n\n

      The sector breakdown<\/strong> of the Norwegian Government Pension Fund is, in turn, very similar <\/strong> to that of the MSCI World Index<\/strong>, with technology shares leading the way, followed by financial institutions and consumer goods. <\/p>\n\n\n\n