Most of these gains have come in the past 15 days alone. GXG, COLX, and ICOL have gained around 7.9%, 8.4% and 9.2% in the past two weeks, suggesting a very strong rally as of late.
The Colombian markets seem to have heaved a sigh of relief on the back of improving economic fundamentals. The rally might continue for sometime, if the nation continues to divulge encouraging numbers.
For 2014, the economy is expected to grow in the range of 4%–4.5%. Strong domestic demand and consumption along with foreign direct investment are expected to be the primary factors for lifting the nation’s GDP.
Moreover, the strengthening U.S. and Euro economy is expected to support the country’s struggling export sector. The Colombian economy is a major exporter of commodities from the energy sector (oil, coal, natural gas) to the agricultural sector (coffee) while U.S. and Europe are the two largest trading partners of Colombia (read: Will Coffee ETFs Continue to Brew Returns in Q2?).
Given the prospects of further gains, the above three ETFs could be kept on investors’ radar as the clearly have proven to be solid choices for the Latin America market, at least in the short term.
This article is brought to you courtesy of Eric Dutram.