Emelting markets felt the pain of the rising dollar, but it did not affect the Global X MSCI Greece ETF (GREK)which is positive for the year with a gain of 2% since the beginning of the year.
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 is 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. Thus, investors looking to add a touch of diversification to their portfolios with emerging markets (EM) can consider GREK as a potential growth opportunity.
“The upgrade reflects our expectation of continued improvement in the effectiveness of Greek policy, while the fallout from the war in Ukraine appears manageable in light of the sizable buffers in the private and public sectors,” S&P said. Global Ratings in a statement.
One thing to watch will be the ongoing conflict between Russia and Ukraine. S&P Global Ratings predicts this could lower GDP growth in Greece this year.
“Russia’s invasion of its neighbor is the main driver of our projection that Greek GDP growth will slow to 3.4% in 2022 from 8.3% last year,” the agency added.
Targeted exposure to Greece in 1 ETF
With respect to the ETF itself, GREK seeks to provide investment results that generally correspond 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 universe of Greek equities. At a spend rate of 0.57%, GREK offers investors:
- Efficient access: Efficient access to a large basket of Greek securities.
- Targeted exposure: Targeted exposure to a single country.
- A unique offering: The first and only ETF to directly target Greece.
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