A news release said COLX 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 not only includes local companies domiciled and listed on the Colombian exchange, but also offshore companies that derive the majority of their assets (revenues) in the country.
As of March 10, 2011, approximately 74% of the equities in the Index were local Colombian companies, while the remainder was listed offshore. The comprehensive nature of the Index, combined with its weighting caps, leads to greater diversification by sector and market cap. Its 27 holdings are made up of approximately 51% large-cap equities, 36% mid-cap equities, and 13% small-caps. As of March 10, the largest sector weightings were Financials (33%), Energy (30%), and Materials (17%).
“Colombia’s commodity-based economy appears poised to experience growth in both trade and foreign direct investment,” said Allison Lovett, Vice President of Marketing at Van Eck Global, in the announcement. “And the merger of the Colombian stock exchange with Peru’s exchange may further strengthen the country’s position among regional capital markets.”
COLX carries a competitive net expense ratio of 0.75% and a gross expense ratio of 0.97%.