(GREK) MSCI Greece - Overview

The Global X MSCI Greece ETF (NYSE ARCA: GREK) commits at least 80% of its assets to the securities that compose its benchmark index, including ADRs and GDRs that mirror those Greek equities. The underlying index is constructed to capture the performance of the broad Greece equity universe, but the fund is classified as non-diversified, meaning concentration risk can be material.

Key quantitative traits (as of the most recent public filing) include an expense ratio of roughly 0.65%, total assets under management near $150 million, and an average daily trading volume of about 30,000 shares. The top five holdings-typically dominated by banks (e.g., Eurobank), shipping firms (e.g., Tsakos Energy), and tourism-linked companies-represent roughly 40% of the portfolio, underscoring sector concentration.

From a macro perspective, Greece’s equity market is heavily influenced by three drivers: (1) tourism recovery, which currently contributes about 12% of GDP and is projected to grow 4–5% YoY; (2) the shipping sector, benefitting from a global freight-rate rally that has lifted earnings multiples for Greek-registered vessels; and (3) the banking sector’s credit-risk profile, which remains sensitive to sovereign debt spreads and EU fiscal policy. Recent GDP data show a 2.3% annualized growth rate in Q3 2024, suggesting a modest but positive backdrop for equities.

Given the ETF’s high exposure to a few sectors, investors should monitor sector-specific metrics-tourism occupancy rates, Baltic Dry Index movements, and NPL (non-performing loan) ratios in Greek banks-to gauge upside or downside risk.

For a deeper, data-driven dive into GREK’s risk-adjusted performance and how it fits into a broader emerging-market strategy, you might find the analytics on ValueRay worth exploring.