We’re all waiting for the Greek collapse. It hasn’t happened yet, but that means it’s the perfect time for Global X to set up a new, first-ever dedicated Greece-only ETF (GREK). Why, you might ask, would anyone want to put all their chips on this nation that is either going to a) leave the Euro, b) default on its debt, or c) very likely both?
The best time to clean up is after there is blood in the streets, as they like to say. A Greek ETF makes straightforward plays on public perception about Greece’s status much easier. Institutional investors already have several options for direct investment in Greece, but a Greek ETF ensures the opportunity to play directly on retail investment in Greece.
New Global X Greek-Only ETF
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The Global X FTSE Greek 20 ETF (GREK) began trading on the NYSE Euronext Arca exchange on Thursday, December 15, 2011.
This may be the perfect time to invest in Greece, as troubled as it is. The MCSI Greek Index is down at least 90% from October 2007 levels (i.e., a year before Lehman!), and between 35-60% from the beginning of 2011.
This fund tracks the FTSE/ATHEX 20 Capped Index – the top 20 companies on the Athens Stock Exchange (ranked by market cap).
20 Largest Greek Companies
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By market capitalization, these are the top 20 companies that comprise the FTSE/ATHEX 20 (and the Global X GREK):
1. Coca-Cola Hellenic (EEEK)
2. Greek Org of Football Prognostics (OPAP)
3. National Bank of Greece (ETE)
4. Hellenic Telecom (HTO)
5. Titan Cement (TITK)
6. Hellenic Petroleum (ELPE)
7. Public Power Corporation (PPC)
8. Bank of Cyprus (BOC)
9. Marfin Laiki Bank (MARFB)
10. Jumbo S.A. (BELA)
11. Motor Oil (Hellas) (MOH)
12. Viohalko Hellenic Copper (BIOX)
13. Marfin Investment (MIG)
14. FF Group (FFGRP)
15. Mytilineos Holdings S.A (MYTIL)
16. Piraeus Bank (TPEIR)
17. Alpha Bank A.E.(ALPHA)
18. Ellaktor (ELLAKTOR)
19. EFG Eurobank (EUROB)
20. TT Hellenic Postbank (TT)
The GREK ETF might also be capitalizing off the media exposure that Greece’s troubles have been given over the past two years. More attention to the Greek market means more potentially interested investors in that market.
Given all these factors, it is actually a little surprising that until now there hasn’t been a dedicated Greek ETF. There have been Europe-focused ETFs with partial exposure to Greece, of course, but this is the first Greek-only ETF.
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