ETFs Moving On Greek Election
The Greek vote is in and the results were not a surprise; Syriza won the majority of votes and will take over the country.
The news initially sent stocks around the globe lower; however, by the time the opening bell rang January 26 in the U.S., the losses have been pared.
There are still many unknowns in regards to the election and the future of Greece and its place in the European Union. The next couple of weeks should offer some insight into the longer-term debt issues the country faces.
Even though the Greek economy is a small part of the global economy, an exit by Greece from the European Union ("Grexit") could have a ripple effect around the world.
The news has had a direct impact on ETFs related to Greece and Europe, as well as some of the commodity plays. Below are a few of the big movers.
Global X FTSE Greece 20 ETF
The Global X Funds (NYSE: GREK) consists of 20 of the largest and most liquid publicly-traded companies in Greece. The ETF is distributed across eight sectors, with financials at 37 percent and consumer discretionary at 14 percent being the most heavily weighted sectors.
The top individual holdings include:
National Bank of Greece (ADR) (NYSE: NBG) making up 9.6 percent of the ETF
Coca Cola HBC AG-CDI at 9.3 percent
Hellenic Telecom Organization S.A. (ADR) (OTC: HLTOY) coming in at 9.3 percent as well
The Greek ETF is down 40 percent over the last 12 months and down 42 percent over the last six months. The Greek ETF has an expense ratio of 0.61 percent and is down over 5 percent on the news of the election.
iShares MSCI Germany ETF
The iShares MSCI Germany Index Fund (ETF) (NYSE: EWG) provides investors exposure to mid- and large-sized companies in Germany across ten sectors, with consumer discretionary at 21 percent and financials at 17 percent.
Related Link: Hedged European ETFs Lead Rally
The top individual holdings include:
Bayer AG (ADR) (OTC: BAYRY) with a 10.1 percent holding
Siemens AG (ADR) (OTC: SIEGY) making up 7.8 percent of the ETF
Daimler AG (OTC: DDAIF) coming in at 7.4 percent
EWG is down 9 percent over the last 12 months and down 8 percent over the last six months. The ETF has an expense ratio of 0.49 percent. EWG has been able to buck the trend of selling and is up over 1.5 percent on the morning after the election results.
Investors should expect volatility in the coming days as investors digest the news from the Greek election and make bets on whether Greece will remain in the European Union.
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