ETFs Moving on Greek Election

The Greek vote is in and the results were not a surprise. The far left, socialist party of Syriza won the majority of votes and will take over the financially challenged country. The news sent stocks around the globe lower initially, however by the time the opening bell rang on Monday morning in the U.S. the losses have been pared.

There are still many unknowns in regards to the election and the future of Greece and their place in the European Union. The next couple of weeks should offer some insight into the longer-term debt issues the country faces. Even though the Greek economy is a small part of the global economy, an exit by Greece from the European Union could have a ripple affect around the world.

The news has had a direct impact on ETFs related to Greece and Europe as well as some of the commodity plays. Below are a few of the big movers.

The Global X FTSE Greece 20 ETF GREK consists of 20 of the largest and most liquid publically traded companies in Greece. The ETF is distributed across eight sectors with financials at 37 percent and consumer discretionary at 14 percent being the most heavily weighted sectors. The top individual holdings include National Bank of Greece NBG making up 9.6 percent of the ETF, Coca Cola HBC AG-CDI at 9.3 percent, and Hellenic Telecom HLTOY coming in at 9.3 percent as well. The Greek ETF is down 40 percent over the last 12 months and down 42 percent over the last six months. The Greek ETF has an expense ratio of 0.61 percent. The ETF is down over 5 percent on the news of the election.

The iShares MSCI Germany ETF EWG provides investors exposure to mid and large sized companies in Germany across ten sectors with consumer discretionary at 21 percent and financials at 17 percent. The top individual holdings include Bayer AG with a 10.1 percent holding, Siemens AG making up 7.8 percent of the ETF, and Daimler AG coming in at 7.4 percent. EWG is down 9 percent over the last 12 months and down 8 percent over the last six months. The ETF has an expense ratio of 0.49 percent. EWG has been able to buck the trend of selling and is up over 1.5 percent on the morning after the election results.

Investors should expect volatility in the coming days as investors digest the news from the Greek election and make bets on whether Greece will remain in the European Union.