Global X ETFs launches First Fixed Income ETF in Colombia

NEW YORK and BOGOTÀ, Colombia, March 20, 2024 /PRNewswire/ — Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced that the firm has launched Colombia’s first ever fixed income ETF—the Colombian Public Debt Stock ETF (GXTESCOL). GXTESCOL provides investors with greater accessibility to the Colombian sovereign bond market in local currency. The launch follows an evaluation process in which Global X ETFs was selected as the fund manager by the Colombian Ministry of Finance.

GXTESCOL seeks to offer greater accessibility to the Colombian sovereign bond market in local currency to investors while tracking the total return of the JPM GBI-EM Colombia Government Local Currency Bond Index. The fund will function as an Issue-Driven Exchange Traded Fund (ID ETF), a global initiative of the World Bank to support the development of domestic capital markets in emerging economies by collaborating with local partners and allowing local currency debt to be packaged into an ETF format. This fund will be denominated in Colombian pesos. In addition to selecting Global X ETFs as manager of the fund, the Colombian Ministry of Finance announced Fiducaria Bogota as administrator of the fund and J.P. Morgan as the provider of the fund’s reference index.

“The launch of the Colombian Public Debt Stock ETF (GXTESCOL) is part of the World Bank’s strategy to create a regional ID ETF in Latin America and then a global one for emerging countries. We are sure that it will contribute to boosting the already developed local currency bond market and will serve as an example and inspiration for the adoption of this instrument by other countries. Supporting the development of the global capital markets is part of our mandate to end extreme poverty and boost prosperity on a livable planet.” says Mark Roland Thomas, World Bank Country Director for Colombia.

“Global X is thrilled to provide investors with further access to the country’s fixed income market” said Federico Torresi, Head of Latin American Sales at Global X ETFs. “We are grateful to have been selected by the Colombian government, and we are confident that GXTESCOL will help develop Colombia’s capital markets while democratizing its sovereign debt through increased accessibility.”

About Global X ETFs

Global X ETFs was founded in 2008. For more than 15 years, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features more than 100 ETF strategies and over $40 billion in assets under management.ii While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Risk Management funds to suit a wide range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.

Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $530 billion in assets under management worldwide.iii Mirae Asset has an extensive global ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $110bn in assets under management.iv

Role of the World Bank

As the developer of the ID ETF program, the World Bank works on different fronts to develop the ID ETF in emerging markets, including: promoting dialogue with market participants and governments; carrying out feasibility analysis and evaluate the expected impact of the product on the development of the capital market; promote product credibility by establishing minimum standards (e.g. support for issuers in primary and secondary markets, compliance with the development objective and fund manager selection process and criteria); and providing technical assistance to address limitations and help countries meet minimum required product standards. The World Bank also acts globally to inform the benefits of the ID ETF and works in other emerging markets to support the replication of the initiative. In Colombia, the World Bank has provided these technical assistance services to the Ministry of Finance and Public Credit. The Colombian ID ETF program has been developed with the support of the Sustainable Finance Facility funded by the Swiss Confederation.

Important Disclosures

Global X has constituted a representative office in Colombia for the promotion and offer of the products and services of a foreign financial corporation represented in Colombia. Global X is a representation office of a financial institution domiciled in the United States of America and authorized by the Superintendence of Finance of Colombia to advertise and offer financial products and services in Colombia.

Any agreement between a potential Colombian client and Global X will be adjudicated by the competent judges of the relevant jurisdiction of the product or service and, therefore, the Colombian figure of financial advisor of the financial consumer is inapplicable in this relationship. Global X has established multiple attention channels for the requests or complaints of its clients, which can be filed through www.globalxetfs.com

Investing involves risk, including the possible loss of principal.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.

Carefully consider a Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s scheme information document. Please read carefully before investing.

Global X Management Company LLC, a U.S.-based company, serves as an advisor to Global X Funds.

CONTACT: Naomi Sussis, nsussis@globalxetfs.com

Federico Torres is registered and recognized before the Superintendence of Finance of Colombia as representative of Global X in Colombia.
ii Source: Global X ETFs, as of February 2024
iii Source: Mirae Asset, as of December 2023
iv Source: Mirae Asset, as of December 2023 

SOURCE Global X Management Company LLC

Published on March 20, 2024

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