European ETFs surged on August 30, following news about two Greek banks being merged, ETF Trends reports. The Athens General Stock Exchange gained 15%, a reaction to the combination of Alphabank and Eurobank. The exchange’s benchmark index is still down 28% year-to-date.
The IShares MSCI EMU Index Fund allocates about 1.18% of assets to Greece and rose 2.7% as of Monday. Top allocations within the portfolio are France, Germany, Spain and Italy. The Vanguard European ETF rallied 2.7% on news of the merger, but Greece only accounts for 0.6% of the portfolio as of now.
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