In downgrading Greece, S&P said the market “lags behind the advancements in market practices typical of other developed markets” while citing the “dramatic and consistent reduction” in Greek equity market capitalization in recent years along with restrictive securities borrowing and lack of ease in transferability.

The news does not seem to be bothering the Global X FTSE Greece 20 ETF (NYSEArca: GREK), which is up 1.2% today. GREK has surged 35.4% in the past three months, aided in part by news that hedge luminaries David Einhorn and John Paulson are bullish on Greek banks. Baupost, Eaglevale, Dromeus Capital, Falcon Edge, York Capital and Och-Ziff are among the other hedge funds that are reportedly making large bets on Greek banks. [After Hedgies Rush in, Mobius Warms to Greece]

In addition to GMM, other emerging markets ETFs that are benchmarked to S&P indices where Greece could possibly find a home include the SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV) and the SPDR S&P Emerging Markets Small Cap ETF (NYSEArca: EWX).

Global X FTSE Greece 20 ETF