The Global X MSCI Greece ETF (NYSEArca: GREK) is up about 17% year-to-date, but some of the shine has recently come off that trade as GREK resides about 19% below its 52-week high. Although GREK, the lone exchange traded fund dedicated to Greek stocks, has been retreating in recent months, some market observers believe Greek equities can bounce back.
There are still some catalysts that could potentially help GREK rebound. Eurozone and emerging markets stocks are attractively valued relative to the U.S. and those discounts are evident with some of GREK’s holdings. That theme has been prompting investors to revisit the lone ETF trading in the U.S. that is dedicated to Greek stocks. Importantly, Greece’s finances are improving.
“Yields on the country’s government bonds, which have already taken great strides lower this year, hit a new low last week on news the government is preparing a major debt swap. The exercise, first reported by Bloomberg News, should allow Greece to sell bonds in future — and help end its dependence on the largess of its main creditors,” according to Bloomberg.
Eurozone and emerging markets stocks are attractively valued relative to the U.S. and those discounts are evident with some of GREK’s holdings. That theme has been prompting investors to revisit the lone ETF trading in the U.S. that is dedicated to Greek stocks.
Related: Greece ETF Looks to Reclaim Momentum