There are unexpected investment opportunities in which Latin American country?

Trouble in Brazil and Argentina may have been dominating Latin American investment news, but that’s no reason for investors to shun the region. 

The head offices of Bancolombia

Colombia hasn’t been making the headlines, but it’s quiet for all the right reasons.

One of the most prudent ways for emerging market investors to approach a nation’s stocks is through an exchange traded fund.

In Colombia, that’s the Market Vectors Colombia ETF (COLX, quote).

COLX replicates the Market Vectors Colombia Index. The largest holding is Ecopetrol SA (EC, quote) at 15.42%. The next biggest position is Bancolombia SA (CIB, quote) at 12.99%.

Both companies are strong performers, with Ecopetrol up 49.68% for 2012 and Bancolombia up 9.48%. Due to their performance, COLX is trading close to its 52-week high at $19.40. 

Civil unrest has been a problem in Colombia, as the Financial Times pointed out in a recent report. But the rising economy is also getting more attention, and more emerging market investors are buying into Colombian stocks. The Market Vectors Colombia ETF is a way to gain exposure to a broad portfolio that has good prospects for the future.

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