The Global X MSCI Greece ETF (NYSEArca: GREK) is already rewarding investors this year. Up more than 12% just this month, the lone exchange traded fund dedicated to Greek equities is higher by almost 22% year-to-date. That makes GREK one of this year’s best-performing single-country Europe ETFs.
Last year, Greece registered a primary budget surplus of €7.4 billion in the year ended November, or nearly €4 billion over its target due to lower spending and higher revenues. The IMF has pressured Europe to cut Greece’s budget target to a primary surplus of 1.5% of gross domestic product instead of its current goal of 3.5%.
“Big money managers have started buying cheap Greek stocks from banks to lotteries as clouds over talks between Athens and its international creditors gradually clear, anticipating big returns. A deal in May when Greece agreed to more austerity measures raised hopes of possible debt relief for a country that has endured economic hardship for years, resulting in the longest winning streak for the Athens bourse in more than two decades,” reports Danilo Masoni for Reuters.