Market Overview

Market Vectors To Launch Colombia ETF


Van Eck, the parent company of Market Vectors, the sixth-largest U.S. ETF issuer, anniounced plans to introduce the Market Vectors Colombia ETF. If the fund eventually comes to market, it would be the second ETF specific to the fast-growing South American after the Global X/InterBolsa FTSE Colombia 20 ETF (NYSE: GXG).

The announcement by Van Eck comes on the heels of a filing by Global X that shows the latter is looking to encroach on territory dominated by Market Vectors as Global X is planning a fertilizer ETF, and ETFs for the rare earths and strategic metals sectors.

The Market Vectors Colombia ETF will track a cap-weighted index maintained by Structured Solutions AG, which contains 29 companies with market values ranging between $150 million and $84 billion with an average market cap of $6.6 billion.

If the Market Vectors Colombia offering is similar to GXG, it will likely be heavy on energy and financials as those two sectors account for 55% of GXG's weight.

GXG has done well in 25 months since its debut, accumulating almost $140 million in assets under management. Global X also recently introduced the Global X FTSE Andean 40 ETF (NYSE: AND), which offers Colombia exposure.

Market Vectors issues 29 ETFs, including 11 country-specific or regional funds. Van Eck has over $20 billion AUM.

Posted-In: News Emerging Market ETFs Intraday Update ETFs


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