Global X Funds, the New York-based ETF provider known for its
commodities and emerging markets funds, launched today the
marketâs first ETF to focus solely on Greece, serving up direct
access to a country most investors have worked hard to avoid as it
sits in the heart of the European sovereign debt crisis.
The Global X FTSE Greece 20 ETF (NYSEArca:GREK) tracks the
FTSE/ATHEX 20 Capped Index, which consists of the top 20 companies
by market capitalization listed on the Athens Exchange. The fund
costs a net expense ratio of 0.69 percent.
Up to now, investors looking to tap into Greek equities could
only do so via broader European-focused ETFs such as the $932
million iShares S'P Europe 350 (NYSEArca:IEV) or the $702 million
iShares MSCI EMU (NYSEArca:EZU), or even the $6.8 billion Vanguard
MSCI European ETF (NYSEArca:VGK). But these fundsâ allocation to
Greece is minimal if not negligible.
Greece has seen its economy succumb to the weight of a massive
sovereign debt burden. The Athens Stock Exchangeâs market
capitalization reached $220 billion in 2007, but has since shed
some 90 percent of its value, dropping to $28 billion as of
November, Global X said, citing Bloomberg data.
âWhile thereâs no guarantee that the Greek economy will
recover to previous levels, current valuations may create an
attractive entry point for the long term investor,â the company
said in a press release.
âWhether bullish or bearish, this new ETF allows investors to
take a viewpoint on the recent news coming out of Greece,â Bruno
del Ama, CEO of Global X Funds, added.
The National Bank of Greece, Coca Cola-HBC and the Greek
Organisation of Football Prognostics tops the list of GREKâs
holdings. From a sector perspective, the fund allocates 35 percent
of its portfolio to financials, with industrials coming in second,
with a 22 percent share of the basket, and consumer discretionary
coming in at 18.5 percent.
GREK is only Global Xâs third Europe-focused ETF, joining a
pair of Nordic and Norway funds. The company has some $1.4 billion
in assets under management, according to data compiled by
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