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March 04, 2011 at 10:32 AM
Global X, the New York-based exchange-traded funds sponsor with $1.5 billion in managed assets, launched Thursday the Global X FTSE Argentina 20 ETF (ARGT), which tracks the FTSE Argentina 20 Index. That index, according to FTSE, includes the 20 largest, most liquid companies that are not listed in Argentina—the second largest economy on the continent as measured by GDP—but that “directly participate in the Argentine economy,” including ADRs, all of which are U.S. RIC-compliant.
Global X already offers five Latin American ETFs that track indexes on Brazilian consumer (BRAQ), financial (BRAF) and mid-cap companies (BRAZ), a Colombian ETF (GXG), and the Andean 40 ETF (AND), based on an index that covers the most liquid companies on the Chilean, Colombian and Peruvian stock exchanges.
The company says ARGT is the first ETF globally to target Argentina, and Global X CEO Bruno del Ama (left), said in a statement that the new ETF provides a “relatively cost-effective way” to access Argentina, which the 2010 CIA Factbook reports is the second largest corn exporter and third largest soy exporter in the world. Del Ama says ARGT fills a “glaring hole” in the ETF universe. As of Feb. 22, 2011, the company said the three largest components in ARGT were Tenaris S.A. ADS, MercadoLibre Inc., and Banco Macro S.A. ADS.