ETF Spotlight: Global X/Interbolsa Colombia 20 (GXG)

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ETF Spotlight on Global X/Interbolsa Colombia 20 (NYSEArca: GXG), part of a weekly series.

Assets: $52.2 million

Objective: Seeks to track the FTSE Colombia 20 Index, before fees and expenses.

Holdings: The fund holds the 20 most liquid stocks in the Colombia market; its top holdings include Ecopetrol, Bancolomia and Pacific Rubiales Energy.

What You Should Know

• The largest sector in the fund is oil and gas, with 28.9% of the weighting; use caution if you’re holding other allocations to oil companies or futures.
• Other heavy sectors include banks, 25%; financial services, 16.5%; and industrials, 9.9%.
• It has an expense ratio of 0.86%.
• It launched on Feb. 5, 2009; since then, it’s up 165.6%.
• Year-to-date, it’s up 39.7%, making it one of the stronger emerging market funds this year. [The Top 5 Emerging Market ETFs.]

The Latest News

• Colombia’s economy is dependent on natural resource exports, with fast growing financial and manufacturing sectors. [Beyond Brazil: Latin America ETFs.]
• Colombia is South America’s third-largest oil producer and largest coal producer
• On the down side, the country is rife with guerrilla fighting and internal risks, but that has not deterred investors, writes Nancy Lopez for The Associated Press.
• The government is projecting a 4.5% GDP increase this year, backed by foreign direct investment.

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