GREK ETF

On a sequential basis, only Poland is delivering better growth than Greece with the economy expected to deliver increasing GDP growth in FY25. Housing related pressures appear to be leaving a mark on inflation again, and the tightening the Golden Visa requirements is a step in the right direction. Greek tourism is benefitting from Turkey's woes, and is poised to see another record year.

GREK is the sole Greece-focused ETF in the US, providing access to Greek stocks at appealing prices. The fund primarily holds financial and mid-cap companies, has shown solid performance, but comes with greater volatility than other European ETFs. I see potential in GREK as a distinctive opportunity for growth in Europe and believe it still has room for further gains.

The Global X MSCI Greece ETF has delivered strong returns of 33% in the past year, outperforming Eurozone stocks by 3.6x. Greece is expected to grow at 2x the pace of Europe this year. Investments in Greece are poised to surge by 15% this year, and Greek banks which account for 43% of GREK look well-placed to participate in this momentum.

Greece's economy is showing strong signs of recovery and growth, making it an opportune time to consider investing in Global X MSCI Greece ETF. The GREK ETF provides exposure to the Greek economy and has performed well, outperforming the S&P 500. Investing in GREK offers the advantage of exposure to a recovering economy, low expense ratio, and strong performance, but carries risks associated with the Financials sector and country-specific uncertainties.

The Global X MSCI Greece ETF is the only diversified option for exposure to liquid stocks from Greece, covering around 26 stocks with a weighted average market-cap of $4bn. The macroeconomic backdrop of Greece is positive, with relatively solid GDP growth, a thriving tourism sector, and a healthy labor market. The ruling government's stability and commitment to reforms and investment growth, along with better fiscal prudence, are expected to contribute to the country's economic improvement.

The Global X MSCI Greece ETF has outperformed the rest of the Euro area this year. With more catalysts on the horizon, the rally still has legs. At the current discount to book, the bank-heavy GREK ETF offers compelling re-rating potential.

Greece's stock market is up nearly 40% in 2023, outperforming other major geographic equity areas. The MSCI Greece ETF (GREK) offers a solid value with improved technical trends and a low P/E ratio. Risks include a concentrated portfolio and soft seasonal trends through August, but the summation of factors makes GREK a buy.

Wall Street delivered a mixed performance last week.

Greek stocks surged and government bonds rallied on election hope.