While Greece will be dwarfed in EEM by the likes of China, South Korea and Brazil, there are estimates that “passive, index-tracking funds will pump $500 million into the affected companies, while an additional $350 million could come from semi-passive funds that are allowed to track the index with more magnitude,” Reuters reported.

Greece will account for less than half a percent of the MSCI Emerging Markets Index and 4% of MSCI’s Emerging Europe Index. Since S&P has also demoted Greece to emerging markets status, the country could become part of the SPDR S&P Emerging Europe ETF (NYSEArca: GUR).

Global X FTSE Greece 20 ETF


Tom Lydon’s clients own shares of EEM.

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