ETF Chart of the Week: Irrepressible Colombia (GXG, EEB, EEM, EWZ, RSX, EPI, FXI, IDX, VNM, EGPT, TUR, EZA)

While U.S. investors can be forgiven for thinking that stocks have been stuck in a fairly narrow trading range for the last 3 ½ months, those who are scanning the globe for investment ideas are likely to have seen an entirely different investment climate.

A case in point is the Global X/InterBolsa FTSE Colombia 20 ETF (NYSE:GXG), which has regularly been showing up as one of the top geography-based ETFs in my weekly newsletter. (NYSE:GXG) is up 42% in 2010, handily outdistancing the BRIC ETF, (NYSE:EEB), and the popular broad-based emerging markets ETF, (NYSE:EEM), which are down -4.8% and -1.8% year-to-date, respectively.

Whereas BRIC has been a popular emerging markets investment theme for the past few years due to the popularity of Brazil (NYSE:EWZ), Russia (NYSE:RSX), India (NYSE:EPI) and China (NYSE:FXI), some have suggested that the current decade may turn out to be the decade of so-called frontier ETFs, with countries like Colombia, Indonesia (NYSE:IDX), Vietnam (NYSE:VNM), Egypt (NYSE:EGPT), Turkey (NYSE:TUR) and South Africa (NYSE:EZA) among the top performers. These frontier ETFs already have their own catchy acronym, CIVETS in order to make them easier to recall.

In terms of economic firepower, don’t expect the CIVETS to displace the BRIC countries, but when it comes to returns, the CIVETS are already off and running. With the best performance of any country ETF so far in 2010, Colombia has been acting like the new lead dog and has earned the spotlight as this week’s chart of the week.

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Disclosure(s): long GXG, IDX and VNM at time of writing

 

Bill is a private investor who also authors the VIX and More (http://vixandmore.blogspot.com/) blog and an investment newsletter from just north of San Francisco. His research and trading interests focus on volatility, market sentiment, technical analysis, and ETFs. Prior to becoming a full-time investor, Bill was a business strategy consultant for two decades and advised clients across a broad range of industries on issues such as strategy formulation, strategy implementation, and metrics. When not trading or blogging, he can often be found running, hiking, and kayaking in Northern California. Bill has a BA from Stanford University and an MBA from Carnegie-Mellon University.
 

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