GXG ETF Review: Is Global X Colombia ETF Worth Buying?

Global X MSCI Colombia ETF provides frontier-market exposure to a dollarizing, reform-minded economy with significant oil production, gold mining, and coal exports — a high-risk, high-reward allocation for investors seeking commodity-leveraged Latin American equity exposure off the beaten path.

Last updated: 2026-02-02 · Data: Yahoo Finance, fund prospectuses, SEC filings

What Is GXG?

The Global X MSCI Colombia ETF provides exposure to Colombian equities across sectors, tracking the MSCI All Colombia Capped Index. Managed by Global X Funds, this ETF captures the performance of Colombian public companies with a focus on the country's dominant energy, utilities, and financial sectors.

The fund carries a 0.62% expense ratio, manages $98.4 million in assets, and launched to give investors access to one of South America's more stable emerging markets. With a 6.41% dividend yield, GXG appeals to income-focused investors willing to accept emerging market volatility.

Current Snapshot

Why It Matters for Real Asset Investors

GXG serves as a targeted play on South American energy infrastructure and commodity exposure through Colombia's resource-heavy economy. The fund aligns with the Energy Macro thesis by providing access to oil production assets, electrical grid infrastructure, and companies positioned to benefit from regional energy development.

Colombia represents a unique emerging market case study: a major oil producer with significant natural gas reserves, hydroelectric capacity, and mining operations. The country's infrastructure companies like ISA (electrical interconnection) and Grupo Energia Bogota (utilities) provide essential services that should benefit from both domestic growth and regional energy integration projects. However, this exposure comes with political risk, currency volatility, and commodity dependence that can create significant drawdowns.

When global investors flee to safety, GXG suffers. When commodity prices rise and emerging market risk appetites return, the ETF can deliver outsized gains. The recent 31.9% one-year return demonstrates this volatility pattern, likely driven by improving oil prices and peso stability.

Top Holdings

Grupo Cibest (14.8%): Colombian holding company with diversified interests across sectors. The large allocation reflects concentration risk in this small-cap ETF.

Ecopetrol (7.7%): Colombia's state-controlled oil and gas giant. Provides direct exposure to crude oil production and refining operations across the region.

ISA (7.5%): Interconexion Electrica operates electrical transmission infrastructure across Colombia and Latin America. Pure infrastructure play on regional grid expansion.

Tecnoglass (5.8%): Architectural glass manufacturer serving U.S. and Colombian markets. Represents construction sector exposure tied to development activity.

Grupo Energia Bogota (4.6%): Utility holding company operating natural gas distribution and electricity generation. Essential services provider with regulated revenue streams.

Cementos Argos (4.3%): Major cement and concrete producer across Colombia and the Caribbean. Direct play on infrastructure development and construction activity.

How It Fits the Portfolio

GXG functions as a satellite position for investors seeking concentrated emerging market energy exposure with infrastructure characteristics. The ETF works best as a small allocation (1-3% of portfolio) during periods when commodity prices are rising and U.S. dollar weakness supports emerging market currencies.

The fund pairs well with broader Latin American exposure or commodity-focused ETFs, but shouldn't be a core holding due to single-country concentration risk. Watch for entry points during broad emerging market selloffs when the peso weakens significantly, creating opportunities in dollar-earning export companies.

Regime Signals

GXG outperforms during commodity upswings, particularly when oil prices rise above $70/barrel and global growth accelerates. The ETF benefits from U.S. dollar weakness, which makes Colombian exports more competitive and reduces the local currency debt burden for domestic companies. Falling U.S. interest rates typically support emerging market flows into higher-yielding assets like GXG.

Conversely, GXG struggles during risk-off periods, dollar strength, and oil price declines. Political uncertainty in Colombia or broader Latin American instability can trigger sharp outflows regardless of fundamentals.

Related Research

• Alabama Power Grid Risk Assessment
• Exxon Mobil (XOM) Tollbooth Analysis
• EWZ: iShares MSCI Brazil ETF
• Chevron (CVX) Tollbooth Analysis
• ConocoPhillips (COP) Tollbooth Analysis

Frequently Asked Questions

What does GXG invest in?

GXG holds Colombia's largest publicly-traded companies, dominated by Ecopetrol (the state oil company), Bancolombia (the largest bank), Grupo Aval (financial conglomerate), and ISA (power infrastructure). The Colombian market is heavily concentrated in energy and financials, meaning GXG's performance is closely tied to oil prices and local economic conditions. With roughly 25 holdings, it is a concentrated bet on Colombia's economic trajectory.

What is the expense ratio of GXG?

GXG charges a 0.58% expense ratio, typical for a frontier/small emerging market country ETF. The fund's AUM is relatively small compared to major EM ETFs, which can result in wider bid-ask spreads and lower daily volume. Investors should use limit orders when trading GXG and size positions appropriately for the reduced liquidity.

What are the risks of investing in Colombia through GXG?

Colombia faces political risk from left-leaning reform agendas that may impact energy companies and foreign investment, security concerns related to ongoing rural instability, and currency risk from Colombian peso volatility. The stock market is small and illiquid by global standards. Ecopetrol's dominant weight means GXG is effectively a single-stock bet on the state oil company combined with a basket of Colombian banks.

How does GXG fit into the Energy Macro framework?

GXG is an opportunistic, high-conviction position for investors who believe Colombia's oil production, mining sector, and strategic location make it undervalued relative to other commodity-exporting economies. The country's growing coal-to-Europe trade after the Russia sanctions, gold mining expansion, and pipeline of infrastructure investment create potential catalysts. Within Energy Macro, GXG is a small satellite position — typically 1-2% of portfolio — used when risk/reward is favorable after Colombian market selloffs.

For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, Global X filings