Seeking Alpha

Extraordinary value in Greek ETF?

  • Up more than 20% YTD, the Global X FTSE Greece ETF (GREK -0.6%) remains maybe the cheapest ETF in the world, writes Paul Baiocchi, with a trailing P/E ratio of just 1x. To put this in perspective, the next cheapest single-country ETF is one for Russia at 5.6x earnings, still 5x more expensive (based on earnings) than Greece.
  • Typically something is only this cheap ahead of an anticipated bankruptcy or massive earnings miss, but how much of Greece's troubles are in the rear-view mirror at this point? The only global value fund - the iShares' MSCI EAFE Value ETF (EFV) - gives Greece just an 8% weighting, but Greece has recently been reclassified as an emerging market. Might the country's shares soon show up in the MSCI Emerging Markets Value ETF (EVAL)?
  • "If you’re a traditional value investor, [the 20% move] could prove to be just the beginning," says Biaiocchi.
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Comments (3)
  • Dimitrios Koutsoubos
    , contributor
    Comments (33) | Send Message
    How you found that P/E=1? I think you should check it better.
    11 Nov 2013, 03:10 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
    How many more bailouts will Greece get..that is how well the market will do...
    11 Nov 2013, 03:15 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9391) | Send Message
    Greece is a bit of a crapshoot at the moment.


    Has the Greek culture of leisure changed in the last five years?
    11 Nov 2013, 03:46 PM Reply Like
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