PGAL has so far amassed $23.5 million in assets. The product is heavily concentrated in its top 10 holdings, which form about three-fourth of the total fund assets. The fund’s top holding Energias De Portugal alone has about 19.5% allocation. The in-focus bank – Banco Espirito Santo— holds about 4.79% of the portfolio.
Sector-wise, the fund is heavily weighted toward the utilities (26.5%) and financial (21.3%) sectors. The fund charges 61 basis points as fees per year. PGAL currently has a Zacks ETF Rank #3 (Hold).
In a nutshell, the Portugal issue has once again spurred tensions over the financial health of Europe. However, there is a bullish hypothesis as well. Some market experts believe that this issue is not really a cause of concern. It just gave investors a reason to book recent profits.
Portugal is a small part of the Euro zone, not capable enough of breaking the recovery balance in the region. Whatever be the case, European markets, especially Portugal, in general will likely remain choppy in the days to come (read:2014: The Year of the Portugal ETF?).
This article is brought to you courtesy of Zacks.com