Emerging Market Growth Story
One of the most impressive emerging market growth stories over the past several years has been Colombia; a country of 46 million people that has aggressively pursued pro-market reforms by reducing regulation, eliminating trade barriers and promoting foreign investment. Colombia has become a critical exporter of natural resources including oil, gold, coal, and coffee, all while continuing to develop trade partnerships with major consumers such as the U.S. and China. The Global X FTSE Colombia 20 ETF (GXG) provides investors with transparent access to this emerging economy, offering exposure to the top 20 companies listed on the Colombian stock exchange.
Fiscal Stability, Steady Growth
Colombia achieved steady growth at an annualized rate of 4.09% between 2001 and 2011. In 2012, the economy grew by 4%, exceeding the Central Bank's forecasts of 3.9%. In 2013, the GDP growth rate is estimated to increase to 4.3%, driven primarily by the mining sector, which has returned to near peak levels of activity (Colombian Central Bank, 2013).
Foreign Direct Investment (FDI) grew by 10.4% in 2012 to $15.8 billion. Sectors outside of energy and mining received 18.6% of these investments, which represents an increase of 104.8% from 2010 to 2012. (Colombian Ministry of Commerce and Trade, 2013)
In 2012, the World Bank's "Ease of Doing Business" indicator ranked Colombia as among the most favorable environments in South America to attract foreign investments.
Fiscal Stability, Steady Growth
Colombia has demonstrated a commitment to fiscal consolidation with the fiscal deficit falling to 2.3% in 2012, down from 2.8% in 2011. It also exceeded expectations and managed a slight budget surplus of 0.3% in 2012. (Reuters, 2013)
S&P and Dominion Bond Rating Service recently raised Colombia's credit rating from BBB- to BBB with a stable outlook. Between March 2011 and April 2013, Colombia's credit rating has improved twice, reflecting the country's improving macroeconomic conditions. (DBRS, 2013).
Oil production and exports have boomed in the last six years, with output of crude doubling from 0.5 million barrels/day to over 1 million barrels/day between 2005 and 2013. Oil exports have increased substantially from $5.5 billion in 2005 to $27.9 billion in 2011. Estimates expect these figures to reach $35.6 billion in 2014 (The Economist, Colombian Central Government, IMF, 2013).
GXG PERFORMANCE HISTORY
As of 09/30/2013 1 Year Avg annualized since inception*
NAV -0.60% 26.10%
Market Price -2.33% 26.01%
Index -0.14% 27.24%
Total Expenses 0.68% 0.68%
The performance data quoted represents past performance. Past performance does not guarantee future results. One cannot invest directly in an index. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-888-gxfund-1 or visit our website at www.globalxfunds.com
*02/06/09
 
 
Register   Share   Get Call Back   Visit Global X Website
DISCLOSURE
Investing involves risk, including the possible loss of principal. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Securities focusing on a single country maybe subject to higher volatility.
This information is not intended to be individual or personalized investment or tax advice. Please consult a financial advisor or tax professional for more information regarding your tax situation. The information presented here is for informational purposes only. It was prepared on information and sources that we believe to be reliable, but we make no representations or guarantees as to the accuracy or the completeness of the information contained herein.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates. Solactive Indexes have been licensed by Structured Solutions AG for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Structured Solutions AG nor does this company make any representations regarding the advisability of investing in the Global X Funds.