Finally, a fund focused on Portugal comes to market, but is it late to the party?
Global X Funds, the ETF sponsor known for its niche strategies and focus on emerging markets, today launched an equities fund focused on Portugal, bringing an ETF that has been in registration for about two years into existence at a time southern Europe is one of the hottest investment destinations.
The Global X FTSE Portugal 20 ETF will have its primary listing on NYSE Arca under the symbol “PGAL,” and will be based on the FTSE Portugal 20 Index, which isolates American depositary receipts and global depositary receipts, focusing on some of the biggest publicly traded companies in the southern European country.
“This is a nice tool to access a market that has been difficult to access historically. It’s a time when hedge funds have been investing in Spain and Italy,” Bruno del Ama, Global X’s chief executive officer, said in an interview, suggesting the time is ripe for a new fund like PGAL.
The launch comes at a time when other ETFs focused on southern Europe—notably the iShares MSCI Spain Capped ETF (EWP | B-94), the iShares MSCI Italy Capped ETF (EWI | B-87) and the Global X FTSE Greece 20 ETF (GREK | F-61)—have been flying high. In the past year, GREK has risen 41 percent, while EWP and EWI have jumped 36 and 26 percent, respectively.
Del Ama said the ETF’s annual expense ratio is 0.61 percent, or $61 for each $10,000 invested, which is less than the 0.65 percent expense ratio on Global X’s Greece fund GREK.
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