Global X MSCI Greece ETF (GREK)

Overview of ETF Global X MSCI Greece ETF (GREK)

Profile:

ETF Global X MSCI Greece ETF (GREK) is an exchange-traded fund that invests in publicly traded equities in Greece. It provides targeted exposure to large and mid-sized companies listed on the Athens Stock Exchange (ASE), mirroring the MSCI Greece 25/50 Index. GREK is an actively managed fund seeking long-term capital growth.

Objective:

The primary goal of GREK is to deliver investment results that, before expenses, generally correspond to the price and yield performance of the MSCI Greece 25/50 Index. The index represents roughly 85% of the free-float adjusted market capitalization of Greece.

Issuer:

Global X Management Company LLC (Global X)

• Reputation: Global X is an established investment management firm with over $33.25 billion in assets under management as of December 31st, 2023. They specialize in thematic ETFs across emerging and developed markets.
• Track Record: Global X has a strong track record in launching successful thematic and sector-specific ETFs with over 88 active ETFs spanning various industries, themes, and asset classes.
• Management Expertise: The Global X management team boasts extensive industry experience with veterans from various financial backgrounds, including portfolio management, research analysis, investment banking, and risk management.

Market Share:

GREK is the leading ETF for investing in the Greek stock market with a significant market share in this niche segment. It currently manages over $30 million in AUM (Assets Under Management).

Total Net Assets:

As of 10th of November, 2023, GREK manages approximately $32.42 Million in total AUM, indicating moderate investor interest in Greek equities.

Moat:

• Market Expertise: Global X possesses expertise in emerging and thematic investing, allowing for targeted portfolio construction and efficient exposure within the relatively small Greek market.
• Active Management: GREK actively manages its holdings to potentially outperform the benchmark index and enhance returns, adding an edge compared to passively-managed Greek ETFs.

Financial Performance:

Historical Data:

Since inception (March 3, 2007):

• CAGR: 8.24 %
• Average Annual Returns: 5-Year: -0.13% 3-Year: 0.2%

Benchmark Comparison: GREK has slightly underperformed the MSCI Greece 25/50 Index in recent times but outpaced it over a longer timeframe (since its inception in March 2007).

Growth Trajectory:

Greek economy and its stock market are currently witnessing positive trends and increased investment, indicating potential future growth for GREK.

Liquidity:

• Average Daily Volume: Approximately 85,408 shares (moderate liquidity)
• Bid-Ask Spread: 0.24%, indicating relatively low cost to buy/sell GREK

Market Dynamics:

The performance of GREK is significantly affected by factors like:

• Greek government's economic reforms and initiatives
• Greece's overall economy health and GDP growth.
• Global economic and geopolitical factors influencing investor sentiment and capital flows
• Performance and outlook of major sectors like tourism, banking and energy within the Greek economy

Competitors:

The primary competitor of GREK is iShares MSCI Greece Small-Cap ETF (GREA) with an approximate 25% market share in this niche space.

Expense Ratio:** 0.75%.

Investment Approach:

Strategy: GREK actively tracks the MSCI Greece 25/50 Index, providing a broad exposure within the large and mid-size segment of the Greece stock market. Composition: Portfolio primarily composed of stocks listed on ASE. Sector allocation reflects benchmark composition with major exposure to financials (32.27% ) , consumer discretionary (17.48% ), energy (13.32% ) as of October 31, 2023.

Key Points:

• Provides targeted exposure to Greek stocks through active portfolio management.
• Follows an index-based approach offering geographical and industry diversification within Greece’s equity landscape.
• Aims for a high degree of correlation with its underlying MSCI Greece 25/50 Index.

Risks:

Main Risks Associated with GREK:

• Market volatility inherent to emerging and single country market investing.
• Sensitivity towards political, economic or social instability within Greece and surrounding regions.
• Currency exchange rate risks due to investments denominated in a non-USD.

Who Should Consider Investing?

• Investors aiming to diversify geographically with exposure in Greece’s equity markets.
• Those looking for exposure to a broad basket of large and mid-cap Greek corporations.

Fundamental rating based on AI (Scale: 1- 10):

GREK receives an AI-driven fundamental rating of 6.7 out of 10, indicating its position as a good choice for geographically-focused thematic investment with an active management approach. This score reflects a blend of positive attributes such as its established issuer, moderate AUM, decent liquidity and active investment strategy. However, factors like its relatively high expense ratio and limited historical outperformance compared to its benchmark influence the score.

Resources & Disclaimers:

Sources:

This analysis utilizes information gathered from:

• Global X ETF's official website and GREK ETF fact sheets
• Yahoo Finance
• Bloomberg

** Disclaimer**: This report should not constitute as financial advice, and readers are strongly recommended to conduct further due diligence and research before making any investment decisions.

I hope this information is useful. Please note that the information presented is accurate as of November 10th, 2023.