This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Now Could Be the Time to Buy Portugal

Stocks in this article: PGAL, EDPFY, EDEN, NVO

NEW YORK (TheStreet) -- A possible sign of the slow return to normal is underway in the European Union in 2013 could be the surprising performance of the equity markets in the PIGS countries. PIGS was the derogatory acronym given to Portugal, Italy, Greece and Spain during the financial crisis and still sticks with them as they work through various political and fiscal obstacles on the way to recovery.

Portugal's PSI 20 Index is up 16% for the year to date. Last week Global X launched the FTSE Portugal 20 ETF (PGAL), which is the only fund in the U.S. market offering exposure.

Five years ago Northern Trust offered a Portugal ETF through its NETS product line of single-country funds -- it was subsequently shut down after just a few months of trading. That Northern Trust fund and the new Global X fund both track similar indexes, with each having 20 holdings.

But there has been a lot of change in the makeup of the index since the financial crisis.

In 2008 the financial sector was the largest in the index at 26% compared to just 15% now. Utilities is the largest sector in PGAL with a 20% weighting followed by consumer services at 23%. Financials and energy at 14%.

Now, as then, the largest holding in the fund is Energias de Portugal (EDPFY), which currently has a 20% weighting in the fund. The top three holdings account for 47% of the fund.

That heavy of concentration is not ideal in terms of constructing an index fund but many smaller markets have smaller indexes and smaller indexes are frequently dominated by just a few companies. The iShares MSCI Denmark Capped ETF (EDEN) has a 20% weighting in Novo Nordisk (NVO) as another example of this type of concentration.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs