A Post-Bailout Look at The Greece ETF

“While, unemployment is down to 19.5% from a high of 26%, it still remains a significant issue. For those fortunate to have work, their wages have fallen 20% as job creation has skewed heavily toward the part-time, lower-wage variety,” according to Global X. “As a result, poverty is rising and a growing concern. Also of significant concern is the drain of talented professionals who are leaving Greece for greener pastures in other European Union countries.”

Related – Greece ETF: Hoping for a Clean Break

With financial services stocks representing nearly 31% of GREK’s weight, the health of that sector is integral to the ETF’s performance. However, Greek banks still need some help.

“With exposure as of June 2018 to approximately $88.6 billion of nonperforming loans (NPLs) Greek banks remain weak. This high amount of NPLs locks up lending because banks must keep capital on their balance sheets to protect against defaults. Less lending, in turn, negatively affects economic growth,” said Global X.

For more information on the Greek markets, visit our Greece category.