The Global X FTSE Greece 20 ETF (NYSEArca: GREK), the lone exchange traded fund dedicated to Greek stocks, will not be known by that name much longer. Nor will GREK be tracking the FTSE/ATHEX 20 Capped Index much longer.
On March 1, GREK will begin tracking the MSCI All Greece Select 25/50 Index as it changes its name to Global X MSCI Greece ETF.
“The MSCI All Greece Select 25/50 Index is designed to represent the performance of the Broad Greece Equity Universe, while including constituents with minimum levels of liquidity. The Broad Greece Equity Universe includes securities that are classified in Greece according to the MSCI Global Investable Market Index Methodology, together with companies that are headquartered or listed in Greece and carry out the majority of their operations in Greece,” according to a statement issued by Global X.
Earlier this month, Greek stocks slid to their lowest price since 1990 as growing concern over the global market, stalled bailout review and yields above 10% all helped push investors out of riskier assets, Bloomberg reports.
Leading the race to the bottom, Greek bank stocks plunged an additional 24% on Monday, the most since August – Eurobank Ergasias SA, Piraeus Bank SA and National Bank of Greece SA all plummeted over 27%. The banks have been struggling with over 100 billion euros, or $111 billion, in non-performing loans and additional capital controls implemented last summer.
The Greek government is still haggling with creditors over additional austerity measures, such as pension cuts and social security overhaul proposals. Greece could be cash strapped by the middle of the year if the government fails to acquire additional funding.
Global X FTSE Greece 20 ETF
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