Van Eck, the parent company of Market Vectors, the sixth-largest U.S. ETF issuer, anniounced plans to introduce the Market Vectors Colombia ETF. If the fund eventually comes to market, it would be the second ETF specific to the fast-growing South American after the Global X/InterBolsa FTSE Colombia 20 ETF GXG.
The announcement by Van Eck comes on the heels of a filing by Global X that shows the latter is looking to encroach on territory dominated by Market Vectors as Global X is planning a fertilizer ETF, and ETFs for the rare earths and strategic metals sectors.
The Market Vectors Colombia ETF will track a cap-weighted index maintained by Structured Solutions AG, which contains 29 companies with market values ranging between $150 million and $84 billion with an average market cap of $6.6 billion.
If the Market Vectors Colombia offering is similar to GXG, it will likely be heavy on energy and financials as those two sectors account for 55% of GXG's weight.
GXG has done well in 25 months since its debut, accumulating almost $140 million in assets under management. Global X also recently introduced the Global X FTSE Andean 40 ETF AND, which offers Colombia exposure.
Market Vectors issues 29 ETFs, including 11 country-specific or regional funds. Van Eck has over $20 billion AUM.
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