An exchange traded fund that invests in Argentina’s stock market is being hit by the government’s plan to take over Repsol oil and gas unit YPF.
Global X FTSE Argentina 20 ETF (NYSEArca: ARGT) fell 3.6% on Monday. The fund is small with only $3.4 million in assets. It was launched in March 2011. [ETF Spotlight: Argentina]
Investors had been worried about the clash between the government and YPF, the nation’s largest oil and gas company. Argentina has been suffering from a steep decline in oil and gas production.
“The move to nationalize Argentina’s largest oil and gas company on Monday marked the culmination of a months-long battle between Repsol and the government of President Cristina Kirchner,” WSJ.com reported.