ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Direct Indexing
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Multifactor
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Thematic Investing Channel
  2. More Great News For The Greece ETF
Thematic Investing Channel
Share

More Great News For The Greece ETF

Aaron NeuwirthAug 29, 2019
2019-08-29

The Global X MSCI Greece ETF (GREK B-), the only ETF dedicated to Greek stocks, is slumping this month, but that may be more a symptom of weakness in emerging markets and Eurozone stocks, not a commentary on the resurgent Greek economy.

In fact, more good news is emerging for GREK, a fund that is up 28.55% this year. Data indicate Greece’s efforts to clean up what was once one of Europe’s messiest sovereign balance sheets are paying off.

“"Greece":https://www.bloomberg.com/quote/1004Z:GA is lifting all remaining limits on the free movement of capital outside the country after four years of restrictions, signaling a further return to normality for the country’s economy,” reports Bloomberg. “Capital controls are ‘now a thing of the past,” Prime Minister Kyriakos Mitsotakis told lawmakers in Athens on Monday, after announcing the move. The restrictions will officially be lifted on Sept. 1.”

Politics Couldn’t Stop Surging ETF

The divided politics and a rise in populist sentiment dragged on Greek markets, but after a request by left-wing Prime Minister Alexis Tsipras to dissolve parliament, followed by a scheduled early national election, the country-related ETF is surging. However, there are other reasons why Greek are among the Eurozone’s most impressive performers.

Looking ahead, the new government is less likely to undo some structural reforms that have been undertaken in the past. Furthermore, the risk of higher labor costs, less labor market flexibility and erosion of wage competitiveness would decline under a New Democracy-led government.

“The controls were first imposed in June 2015 after former Prime Minister Alexis Tsipras reached a standoff with creditors after announcing a referendum that sent depositors running to line up in front of ATMs,” according to Bloomberg.

Related: Greece ETF Rallies on Promising Economic Reforms

Tsipras originally pledged to scrap all painful spending cuts, tax hikes and income reductions to adhere to bailout loan requirements that protected the country from bankruptcy. However, negotiations with creditors led to limits on withdrawals from banks and a near-bankruptcy. Eventually, Tsipras succumbed to pressure against the wishes of his original voters to sign a new multi-billion bailout deal that came with conditions of tax hikes and pension cuts.

“The complete lifting of the restrictions is in full cooperation with the country’s central bank and the European authorities, Finance Minister Christos Staikouras said in a speech in parliament Monday,” according to Bloomberg.

This article originally appeared on ETFTrends.com.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X