GXG ETF

Colombian equities remain attractively priced within MSCI Emerging Markets, presenting a compelling investment opportunity. Inflation should continue to improve in 2025. The Central Bank has already cut rates by 350bps since December 2023, with more cuts possible, enhancing growth prospects.

The global economy faces significant uncertainty. High-interest rates, persistent inflation and geopolitical crises all threaten to roil financial markets.

After the steepest set of rate hikes in LatAm over the last two years, Colombia is finally poised for a rate cut cycle. Easing inflation and an improving fiscal position bode well for the Colombian cost of capital, along with the Petro government's weakening reform push. With equities still very cheaply priced heading into future monetary easing, the risk/reward on MSCI Colombia ETF is looking a lot better.