An exchange traded fund tracking Greek stocks was the top percentage gainer in ETFs on Tuesday on hopes political leaders will reach a deal on a second bailout for the financially troubled European nation.
Global X FTSE Greece 20 ETF (NYSEArca: GREK) rose more than 6% on Tuesday. The fund was up more than 30% year to date heading into the day’s action on signs the Eurozone debt crisis is easing.
“With 35% of the assets in this ETF invested in financial-services companies, we believe that the drivers for and risks to the companies in this ETF relate heavily to whether–and if so, how quickly–Greece is able to get its debt situation in order,” investment researcher Morningstar says in an analyst report on the Greek ETF.
The rebound in the ETF comes after Greece’s stock market plunged 90% from its peak. Trading volume in the fund has been rising as well.
“A lot of investors have an opinion on Greece,” said Global X Funds chief executive Bruno del Ama in a recent interview. “It’s a difficult market to access, but the ETF makes it easier.”