PBH / Colombia / Forums (active) Travelguide Cheap hostels Pictures

Interested in Colombia? A new ETF offers access

NEW YORK (MarketWatch) -- A new exchange-traded fund gives investors the rare opportunity to gain broad exposure to the equity market in Colombia, as the Latin American country moves to mend its international reputation and focus investor attention on its untapped economic potential.

This is the "only ETF globally that provides access to Colombia," said Bruno del Ama, CEO of GlobalX Funds, at a press briefing Tuesday at the New York Stock Exchange.

It provides access to about 95% of the Colombian equity market, he said.

(more): http://www.marketwatch.com/story/interested-colombia-a-new-etf-offers?...

By sloopskipper on Oct 27, 2009, 08:11 in Friendly Talkzone.

bickerss says on Oct 27, 2009, 09:12:

Thanks for the info

Investment Strategy - buying when others are crying!! Offloading when others are gloating!!!

0 funny, 0 helpful.

jdixon150 says on Oct 27, 2009, 11:43:

I have been watching itfor a while, but the volume is very low.

"Life is not a dress rehearsal" Rose Tremain..

0 funny, 0 helpful.

sloopskipper says on Oct 27, 2009, 11:57:

We should have been buying at 10, back in March, instead of watching at 28½☺

Seems that some people think "everybody's outa step but me".

0 funny, 0 helpful.

carplane says on Oct 27, 2009, 14:41:

I have some... I have been commenting that it seems to do just about the opposite of the exchange rate--as of late. So, it is in may ways...hedging. However, it has not been around a long time, so I can't say if this is valid or a just an anomaly.

0 funny, 0 helpful.

RobbieRobNJ says on Oct 27, 2009, 21:53:

gxg has done great its more than doubled !

0 funny, 0 helpful.

RobbieRobNJ says on Oct 27, 2009, 22:04:

I don't think i would use it as a hedge ! The marketas a whole has reacted inversly to the dollar over the past months as well I think it more of an anomaly ! I would wait for a better entry level before adding any GXG .

0 funny, 0 helpful.

kramer says on Oct 27, 2009, 22:07:

It only has about $6 million in assets along with extremely low volume, even after 8 months. That is probably not sustainable and it could be in danger of being liquidated in the future, and the expense ratio is still on the high side for an ETF (0.86%), and you will also pay a lot in a wide bid/ask spread. Let's hope it continues to grow!

This sort of investment really only makes sense for people with assets and income in other currencies who intend to spend or invest a lot of their future income stream in Colombia. It provides a hedge against both Peso strength and real Colombian GDP growth.

But at this point I definitely have to pass until the expenses decrease and it becomes more certain that the ETF is solid enough to exist for many years.

Kramer

0 funny, 0 helpful.