Colombia launches public debt ETF managed by Global X

The National Government of Colombia officially launched the public debt ETF it had been preparing since earlier this year.

The Colombian Government launched a public domestic debt ETF this Wednesday, which will be traded on the local Stock Exchange.

ETFs (Exchange Traded Funds) are investment funds traded on the stock exchange that allow for diversified and low-cost investing.

Trading of the Global X TES Colombia ETF will commence from today at a base price of 50,000 Colombian pesos (approximately $12.8).

TES bonds are the second main source of internal financing for public expenditure, behind tax revenues.

In technical terms, one unit of the ETF will consist of 12 Colombian peso-denominated TES bonds currently in circulation, with an average weighted rate and duration of 9.6% and 5.1 years, respectively.

Meanwhile, in Colombia, the US dollar is trading at the start of operations at an average of 3,888.10 Colombian pesos, representing a change of 0.01% compared to the 3,887.88 pesos from the previous session.

Over the past week, the US dollar has seen a decrease of 0.18%, maintaining a year-on-year decrease of 10.59%.

Compared to previous days, it marks two consecutive dates in positive values. The volatility figure stands at 8.73%, which is significantly lower than the annual volatility data (14.85%). Therefore, in this latter phase, it is experiencing fewer changes than indicated by the general trend.

The Central Bank of Colombia forecasts that by the end of 2024, the exchange rate will average 4,081 pesos per dollar. This is an encouraging forecast, far from the increases that the national currency experienced between late 2022 and early 2023.

ABOUT THE AUTHOR See More

Gabriel Micillo

Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.

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