The Greece ETF continues to rally in the wake of elections that saw the troubled country’s pro-bailout party win at the polls.
Trading volume in Global X FTSE Greece 20 ETF (NYSEArca: GREK) spiked last week as traders positioned for the election.
“Investors can monitor investor sentiment on Greek equity markets simply by watching this ETF’s performance. The ETF was launched last December and has attracted increasing investor attention. This is the only Greek ETF that trades on North American exchanges, and is the only direct way to monitor the Greek equity market,” writes Don Vialoux for the Globe and Mail.
It’s been a rough ride for the Greek ETF this year. The ETF shed more than half its value between February and June on Europe’s raging debt crisis.
However, the fund has rallied 30% for the week ended June 19, according to Morningstar.
“What happens next? Formation of a coalition is expected to have a positive impact on Greek equity prices. However, failure to form a coalition or significant changes to financial terms proposed by the Eurozone are expected to have a negative impact on Greek equity prices. This is a highly volatile ETF, which can be best used to get a feel for the market before official announcements come out. Stay tuned by watching price action of the Global X Greece 20,” Vialoux said.
The Greece ETF has climbed back above its 50-day moving average. The fund is relatively small with $5.4 million in assets under management.
Global X FTSE Greece 20 ETF
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