Trade Andean ETF: Global X FTSE Andean 40 ETF for Large Cap Latin America Stocks of Chile Peru & Colombia

For investors who have been looking for investing into the emerging market economies, especially in the latin american region, there comes a good option to invest through ETF or exchange traded funds. In this article, we cover the Andean region ETF which will focus on investing in stocks specific to the South American countries under the Andean region. One such ETF is the Global X FTSE Andean 40 ETF focussing on top 40 large cap stocks of Chile Peru & Colombia stock exchanges. This article provides a review of such Andean ETF (Global X FTSE Andean 40 ETF)

Investments today is not bound by geographical locations or countries. Anything that happens in Egypt not just affects Egyptian Investors (Trade Egypt ETF Carefully: Egypt ETF Trading despite Egypt stock exchange closure), but affects the US, European investors equally. Investors and traders are now willing to make more cross-border investments and for USA & Europe, Latin America or South American continent countries and their stocks exchanges and companies provide a good investment option. Image Sourced from screen-shot at www.globalxfunds.com site and edited by FTT.

Hence, to capitalize on this trading and investment in the Latin American region, the NewYork based Global X investment firm has decided to launch a large cap ETF specifically focussed on Large Cap Latin America or South American Stocks of Chile Peru & Colombia.

What is the basis for selecting only these 3 countries for Global X FTSE Andean 40 ETF?
It is because of a pending agreement between Chile, Peru & Colombia, where they have planned to merge their stock exchanges and offer a common trading platform across the 3 countries. Most likely, once this agreement goes through, the joint stock exchange formed by the merger of these 3 countries will be the second largest stock exchange in the South American region. The largest will still be Brazil. Third placed will be the Mexican stock exchange, which is expected to be just half the size of the joint 3 stock exchange.
This will mean all the stocks currently listed in any of these 3 stock exchanges of Chile, Peru & Colombia can be traded through one single bourse or exchange entity. Common exchange is expected to provide a lot of synergy for trading and investments not only to these 3 countries as well as to the rest of the world, who may like to invest through this combined entity.

Another reason is that these 3 countries are known to be top ranked for doing business in the South American region, so expectations of growth is positive.

See Related: Largest ETF List: Low Prices do matter for ETF selection

What will be the trading Symbol for Global X FTSE Andean 40 ETF?
Global X FTSE Andean 40 ETF will trade on NYSE Arca exchange with the Symbol AND - for Andean region.

What is the underlying index for Global X FTSE Andean 40 AND ETF?
It will track the FTSE Andean 40 Index - this is a free-float-adjusted index modified capitalization-weighted index. As the name suggests, this takes only the largest 40 stocks of most liquid companies in Chile, Colombia and Peru. The Andean ETF from Global X (AND ETF) will track and attempt to replicate the performance of this underlying index.
Hence, this Andean AND ETF will provide a good option for investors who are looking for investment and trading in the large cap stocks of these 3 countries combined.

What are the annual charges for AND ETF - Global X FTSE Andean 40 ETF?
The company will charge a 0.72% fees annually.

One more thing to note is that the AND ETF will have more weightage towards Chile based companies, as around half of the capital will be allocated to Chile based comapnies, while the remaining half will be for rest of the two countries - Colombia and Peru