Global X Funds launches Greece ETF

Dec 9th, 2011 | By | Category: Equities

Global X Funds, a New York-based provider of exchange traded funds, has announced the launch of the Global X FTSE Greece 20 ETF.

Global X Funds launches Greece ETF

Global X Funds launches Greece ETF.

This is the first ETF listed on the NYSE tracking the Greece equity market. Until now, US-based investors had been limited to ETFs that offered only partial exposure to Greek equities.

Bruno del Ama, chief executive officer of Global X Funds, said: “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,”

Since reaching a peak market capitalization of over $220 billion in 2007, the market cap of the Athens Stock Exchange has fallen nearly 90% to under $28 billion as of November 2011.

While there is absolutely no guarantee that the Greek economy will recover to previous levels, current valuations may create an attractive entry point for the ultra-contrarian long-term investor.

The ETF also provides investors with a vehicle to facilitate short-term tactical investment strategies amid Europe’s ongoing sovereign-debt crisis

“Greece has been in the headlines pretty much every other day for the last 18 months,” del Ama told Dow Jones Newswires. “It’s a market where a lot of people have an opinion. [We’re aiming to] facilitate access to that market.”

The Global X FTSE Greece 20 ETF tracks the FTSE/ATHEX 20 Capped Index which is designed to reflect broad based equity market performance in Greece.

The index is comprised of the top 20 companies listed on the Athens Exchange ranked by full market capitalization, providing investors with a comprehensive and transparent way to measure the performance of these companies.

As of December 1, 2011, the index’s three largest stocks were National Bank of Greece, Coca-Cola HBC, and Greek Organisation of Football Prognostics SA.

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