The continuing saga over a Greek sovereign default has seemingly reached critical mass. Market watchers are divided over whether a deal can be reached to meet financial obligations and set the country on a sound fiscal course.
The Global X FTSE Greece 20 ETF (Global X Funds GREK) is the only exchange-traded fund solely dedicated to the 20 largest and most liquid stocks trading on the Athens Stock Exchange. GREK has nearly $300 million in total assets and charges an expense ratio of 0.61 percent.
Since the beginning of the year, GREK has lost over 20 percent. In fact, half of those losses have come in just the last four trading days, as debt repayment deadlines loom and pessimism sets in.
GREK Investing
GREK has accumulated $234 million in net inflows this year, accounting for nearly 80 percent of its total assets. In addition, there have only been five days of relatively miniscule net outflows in this ETF since the beginning of 2015.
That conviction speaks to a potentially aggressive move by a cadre of investors seeking a deep value area of the global market. GREK has the potential for a big snapback if the government can find the means to satisfy its detractors.
Not New Phenomenon
RSX has now rallied over 28 percent this year and is one of the top emerging market countries in 2015.
Those ETF investors seeking more diversified global value opportunities may be interested in researching the Cambria Global Value ETF GVAL or ValueShares International Quantitative Value ETF IVAL as well.
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