Those inflows, which amount to just over two-thirds of GREK’s current assets under management tally of $318.4 million, could be partially attributable to the fund’s increased short interest. As short sellers borrow more shares of an ETF, new shares outstanding are created, giving the impression that the ETF is growing. When those traders cover, the ETF’s shares outstanding count falls.
Predictably, short bets on GREK “have been volatile, with traders moving quickly to shut down negative bets on positive news flow. The short interest level on the Greek ETF slumped to around zero percent in April, but it has since increased back to 5 percent as anxieties over Greece returned,” according to Reuters.
GREK has a standard deviation of 48.2%, according to Global X data. That is nearly quadruple the three-year standard deviation on the MSCI Emerging Markets Index, a relevant comparison because the major index providers classify Greece as a developing market.
Global X FTSE Greece 20 ETF
