PIIGS ETFs Beginning to Struggle Again

The PIIGS (Portugal, Ireland, Italy, Greece, Spain) have been out of the headlines for a few years as the economy in Europe was able to stage off a collapse of the European Union.

This week's flashbacks to the financial crisis started to occur when Greek stocks fell by over 12 percent on Tuesday, December 9. The selling was spurred by the news of elections being moved up, which could result in changes that would affect the current bailout situation.

Greece’s struggles have had a ripple effect across Europe as her future looks bleak and investors continue to pull money out. Rumor has it that the new ruling party may go as far as to abandon the Euro and begin to use their own currency again. This would have a dramatic effect across Europe, further crippling the currency.

Highlighted below are a few PIIGS ETFs that have been pulled down by the most recent news out of Greece, and heightened concerns about the European economy.

Related Link: Euro Steady Above $1.23 Following Monday's Sharp Drop

Global X FTSE Portugal 20

The Global X FTSE Portugal 20 ETF PGAL follows 22 publicly traded Portuguese companies across nine sectors, with utilities at 29 percent and financials at 19 percent being the most heavily weighted sectors in the ETF.

The top individual holdings include:

• Energias De Portugal with a 23.6 percent holding
• Galp Energia SGPS SA at 12 percent
• Banco Comercial Portugues coming in at 11 percent

PGAL is down 25 percent year-to-date and down 35 percent over the last six months. The ETF has an expense ratio of 0.61 percent.

Global X FTSE Greece 20

The Global X Funds GREK consists of 20 of the largest and most liquid publicly traded companies in Greece. The ETF is distributed across eight sectors, with financials at 37 percent and consumer discretionary at 14 percent.

The top individual holdings include:

• National Bank of Greece (ADR) NBG making up 10 percent of the ETF
• Piraeus Bank SA BPIRYwith a 9.1 percent holding
• Hellenic Telecom Organization S.A. (ADR) HLTOY at 8.4 percent

The Greek ETF is down 32 percent year-to-date and down 37 percent over the last six months. GREK has an expense ratio of 0.61 percent.

iShares MSCI Spain

The iShares MSCI Spain Capped ETF EWP is made up of 29 large and mid-sized publicly traded companies in Spain, with targeted access to 85 percent of the Spanish stock market. EWPs holdings are distributed across nine sectors, with financials at 47 percent making up the majority of the ETF.

The top individual holdings include:

• Banco Santander, S.A. (ADR) SAN with a 21.6 percent holding
• Telefonica S.A. (ADR) TEF making up 12.2 percent of the ETF
• Banco Bilbao Vizcaya Argentaria SA (ADR) BBVA coming in at 11.4 percent

The Spain ETF is down 3 percent year-to-date and down 15 percent over the last six months.

This issue in Greece is far from over, as is the problem with slowing growth throughout the region.