Today iShares [profile]
is launching an equity ETF focused on Columbian companies, IndexUniverse
reports. That would make the ETF the third and cheapest U.S. ETF targeting Columbia.
The ETF, iShares MSCI Columbia Capped ETF
, will invest in 25 local companies. The annual expense ratio is 0.61 percent, or 61 bps, the lowest out of all three ETFs. Market Vectors [profile] Columbia ETF
cost 0.75 percent pr 75 bps, and the Global X [profile] FTSE Columbia 20
costs 0.79 percent or 79 bps.
iShares is focusing on more diversification by imposing a 25 percent cap on single company exposure. Companies with a weight of more than 5 percent can't total more than 50 percent of the total in the aggregate.
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