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Greece ETF Up 20% Since March; Fitch Lifts Credit Rating


Global X FTSE Greece 20 ETF (GREK) has rallied 20% since the end of March as investors turn more sanguine on Europe’s debt woes and the health of the global economy.

The Greek ETF climbed 3.5% in afternoon trading Wednesday in the wake of a credit upgrade from Fitch Ratings. The fund, which was launched in December 2011, is trading at an all-time high.

Fitch on Tuesday lifted Greece’s sovereign debt rating to B- from CCC. The country is still rated junk.

The ratings agency forecast a milder recession in Greece this year but pointed out problems remain and recognized the unpopularity of austerity measures being pushed through by the government, BBC News reports.

“The price has been high in terms of lost output and rising unemployment and the capacity for recovery is still in doubt,” Fitch said. “Nonetheless, sovereign debt relief and an easing of fiscal targets have lifted central bank measures of economic sentiment to a three-year high and the risk of eurozone exit has receded.”

The Wall Street Journal reports investors are returning to Greece on easing debt fears and the juicy yields offered by some of its troubled assets.

The Greece ETF is up nearly 80% for the trailing 12 months. Trading volume in the fund has been picking up the past two weeks. [Greek ETF Bounces Back]

“Hedge funds and private banks are seeking out bonds issued by Greek companies, which are tapping credit markets in increasing numbers,” WSJ reports.

Global X FTSE Greece 20 ETF