This Greek ETF Is Faring Well Against a Broad EM Index | ETF Trends

Emerging markets have been feeling the pain of a rising dollar, but that hasn’t been impacting the Global X MSCI Greece ETF (GREK), which is positive for the year at a 2% gain year-to-date.

Compare that to the MSCI Emerging Markets Index, which is down almost 13% for the year, and the disparity in performance is clear. So what’s pushing the Greece ETF higher despite global headwinds such as rising inflation?

Last week, S&P Global Ratings upgraded Greece’s debt rating to BB+, according to the Greek Reporter. As such, investors looking to add a touch of diversification to their portfolios with emerging markets (EM) may want to look at GREK as a potential growth opportunity.

“The upgrade reflects our expectation of a continuous improvement in Greece’s policy effectiveness, while the fallout from the war in Ukraine appears manageable in light of considerable buffers in both the private and public sectors,” S&P Global Ratings said in a statement.

One thing to watch will be the ongoing conflict between Russia and Ukraine. S&P Global Ratings forecasts that this could push GDP growth lower in Greece this year.

“Russia’s invasion of its neighbor is the key driver of our projection that Greek GDP growth will decelerate to 3.4 percent in 2022 from 8.3 percent last year,” the agency said further.

GREK Chart

Targeted Exposure to Greece in 1 ETF

As for the ETF itself, GREK seeks to provide investment results that correspond generally to the price and yield performance of the MSCI All Greece Select 25/50 Index. The underlying index is designed to represent the performance of the broad Greece equity universe. At a 0.57% expense ratio, GREK gives investors:

  • Efficient access: Efficient access to a broad basket of Greek securities.
  • Targeted exposure: Targeted single-country exposure.
  • A unique offering: The first and only ETF to directly target Greece.

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