Presidential Election Makes Colombia ETF One To Watch

Name an emerging market ETF and the case can be made that there is some element of political risk associated with that ETF. Narrow the focus to Latin America and you really have to pay attention to politics. Such is the case with the Global X/InterBolsa FTSE Colombia 20 ETF

one of the hidden gems of Latin America ETFs. Under current President Alvaro Uribe, Colombia has reshaped its image, at the very least entering the conversation regarding places to invest in South America after Brazil. Uribe was diligent and successful in containing leftist guerilla groups and controlling crime, but Uribe's bid to run for a third term was rejected earlier this year, which may be unfortunate for investors because he probably would've won. Colombia's May 30 election pit Uribe's chosen successor, Juan Manuel Santos, against two-term Bogota Mayor Antanas Mockus. In what can only be deemed a surprise, Mockus is ahead in the polls. The May 30 election will lead to another round of elections, unless one candidate trounces the other, so this is campaign will likely drag on a few more months. Questions remain about Mockus's ability to fight crime in Uribe-esque fashion, so GXG might be under some pressure should he win. GXG contains two ADRs: BanColombia

and Ecopetrol

.