iShares Colombia ETF First With Market Maker

BlackRock’s (NYSE: BLK) iShares unit, the world’s largest ETF sponsor, and Cititrust Colombia introduced BTG Pactual as the market maker for iShares COLCAP, the first and largest local equity ETF available in Colombia to all investors.

iShares COLCAP is now the first Colombia-listed with market maker, a move aimed at boosting liquidity.

“BlackRock has deep experience in international markets such as Mexico and Brazil, which has allowed us to work with local regulators to continue to develop innovative solutions for investors across Latin America.  By working with Cititrust Colombia, BTG Pactual and Bolsa de Valores de Colombia, we are able to improve the liquidity for Colombia’s largest Equity ETF, iCOLCAP,” said Axel Christensen, head of the South America ex Brazil region for BlackRock, in a statement.

BTG will provide ongoing bid and ask pricing while acting as buyer and seller of iCOLCAP to meet investor demand.

iCOLCAP offers exposure to Colombian stocks in sectors including financial services, energy and utilities. The product is not a mirror image of the iShares MSCI Colombia Capped ETF (NYSEArca: ICOL), which iShares launched in June 2013.

The $1.3 billion iCOLCAP tracks the COLCAP index and is limited to the 20 most liquid Colombian stocks. ICOL holds 25 stocks and tracks the MSCI All Colombia Capped Index. Nearly three years old, iCOLCAP is the largest Colombia ETF listed anywhere in the world. Currently, the fund is the lone iShares offering listed in Colombia, South America’s second-largest economy.