Global X, a provider of exchange traded funds that specializes in alternative asset classes, launched the first ETF tracking Greek stocks Thursday. Needless to say, the ETF should be volatile as the debt crisis continues to shake the Eurozone.
Global X FTSE Greece 20 ETF (NYSEArca: GREK) will try to reflect the FTSE/ATHEX 20 Capped Index, which follows the 20 largest companies by market cap on the Athens Stock Exchange, Brendan Conway writes for WSJ’s MarketBeat.
“Greece has been in the headlines pretty much every other day for the last 18 months,” Global X Funds chief executive Bruno del Ama, said in the article. “It’s a market where a lot of people have an opinion. [We're aiming to] facilitate access to that market.”
Greek equities have been among the worst performers since the start of the Eurozone’s debt woes, with major indices down between 34% to 60% year-to-date.
“A lot of the valuations in Europe reflect a tremendous amount of risk,” del Ama added in the WSJ story.
“Global X Funds strives to facilitate access to foreign markets. Whether bullish or bearish, this new ETF allows investors to take a viewpoint on the recent news coming out of Greece,” the CEO said in a press release.
For more information on Greece, visit our Greece category.
Max Chen contributed to this article.