The race to launch exchange traded funds into new markets continued this week as Van Eck, Invesco and Global X all ventured into ETFs that cover Colombia, Mexico, gold miners and oil equities.
“Pure play” was the theme as Van Eck Global launched its Global Market Vectors Colombia ETF (NYSE Arca : COLX), Invesco PowerShares announced plans to expand its geographic coverage through a series of cross-listings in Mexico, and Global X Funds launched both the Global X Pure Gold Miners ETF (NYSE Arca: GGGG) and the Global X Oil Equities ETF (NYSE Arca: XOIL).
Van Eck’s COLX, launched Tuesday, seeks to replicate, before fees and expenses, the price and yield performance of 4AssetManagement’s Market Vectors Colombia Index (MVCOLXTR). The pure-play index includes local companies domiciled and listed on the Colombian exchange, as well as offshore companies that derive the majority of their revenues in the country. As of March 10, 74% of the equities in the index were local Colombian companies.
Invesco PowerShares Capital Management announced Monday its geographic expansion plan through a series of cross-listings in Mexico. Effective March 11, 38 PowerShares ETFs have been cross-listed on the international segment of Bolsa Mexicana de Valores (BMV), adding to 10 existing products that were trading in Mexico before these new cross-listings.
Global X Funds also on Tuesday launched GGGG and XOIL. The launches are the latest of the ETF issuer’s global commodity funds and are aimed at giving investors a purer play in gold and oil equities by following the Solactive Indexes.
In explaining its strategy for the COLX launch, Van Eck officials noted that Colombia is South America’s second largest country, the world’s third-largest Spanish-speaking nation by population and a beneficiary of strong commodity price trends that have resulted in improved exports and credit expansion. Market Vectors ETFs have been offered by Van Eck since 2006 when the firm launched a gold mining ETF.