Colombia's COLO ETF Hits New Cycle Highs as Dollar Weakens
The Global X MSCI Colombia ETF (COLO) has continued to push fresh cycle highs since Hedgeye CEO Keith McCullough added it to ETF Pro Plus on July 17th. The ETF has rallied +13.9% and is now trading above $50.50, surpassing both the buy and sell-some prices.
This outperformance is largely attributed to the weakening US Dollar, which has resumed its bearish trade and trend, pushing below 99 on the US Dollar Index. The inverse correlation between the SPY and the Dollar has also shifted back to -0.62, indicating a potential shift in market conditions.
Hedgeye Macro Analyst Ryan Ricci noted that the Colombian Peso has been on a run, up +3.09% in a single week and +12.8% on the quarter. The Peso's strength is closely tied to Colombia's accelerating growth, with GDP expected to reach +3.5% year-over-year from +2.2%. This acceleration into a falling Dollar has provided a significant tailwind for COLO.