The stock markets of Chile, Colombia, and Peru intend to merge their operations by December 2011. However, you don’t have to wait until then to get onboard as Global X Funds last week (2/3/11) launched the Global X FTSE Andean 40 ETF (AND). According to the press release (pdf), “the Andean region, comprised of Chile, Colombia, and Peru, has been among the best performing stock markets in the world. The ETF will allow investors to take advantage of a pending agreement to merge the stock markets of Chile, Colombia, and Peru, which will create the second largest stock exchange in Latin America after Brazil’s and 50% larger than Mexico’s (World Federation of Exchanges, 2010).”
Country weightings come in at Chile 49.2%, Colombia 28.7%, and Peru 22.1%. The fund has an expense ratio of 0.72%, and largest of the 40 fund holdings are Southern Copper 9.3%, Minas Buenaventura 6.8%, Pacific Rubiales Energy 5.2%, Ecopetrol 5.0%, and Falabella 4.7%.
Sector breakdown is Materials 28.4%, Financials 21.3%, Oil & Gas 14.7%, Consumer Services 12.9%, Utilities 12.5%, Industrials 6.3%, Consumer Goods 2.1%, Telecommunication 1.0%, and Technology 0.9%.
As usual, Global X provides additional information by way of the summary page, fact sheet (pdf), and prospectus (pdf). Also included in the prospectus are yet to be announced offerings of Global X FTSE ASEAN 40 ETF (ASEA), Global X S&P/TSX Venture Canada ETF (TSXV), and Global X Next 11 ETF (NXTE).
The new Global X FTSE Andean 40 ETF (AND) should be a welcome addition to investors wanting a good and convenient way to increase their non-Brazil South America exposure. Investors wanting to create their own customized Andean exposure can use existing ETFs focused on the individual countries:
- iShares MSCI Chile Investable Market (ECH)
- Global X/InterBolsa FTSE Colombia 20 ETF (GXG)
- iShares MSCI All Peru Capped Index Fund (EPU)
Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.