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.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.