According to the Van Eck, the Colombian ETF seeks to replicate, before fees and expenses, the performance of the Market Vectors Colombia Index (MVCOLXTR), created by 4AssetManagement.
MVCOLXTR is a ‘pure play’ index that includes local companies domiciled and listed on the Colombian exchange, as well as offshore companies that derive the majority of their assets (revenues) in the country.
As of 10 March 2011, approximately 74% of the equities in the Index were local Colombian companies, while the remainder were listed offshore.
Van Eck Global principal Jan van Eck said that investors have long looked to emerging markets for short- and long-term growth opportunities. However, in making their emerging market allocations investors are looking beyond BRIC nations, which in recent history have been among the most popular destinations for investor dollars.
"With that in mind, we’re pleased to offer investors a way to access the domestic equity performance of Colombia, a country with significant commodity production capabilities, a recent track record of substantial political reform, and rapidly developing cross-border and cross-exchange cooperation with its neighbors which could spur positive momentum for both that country and the Andean region as a whole," van Eck said.
