Access Global markets: Investing in International Companies Through the Colombian Stock Exchange
Colombian investors now have a pathway to owning shares in some of the worldS largest companies thanks to the Colombian Global Market (MGC), a system operated by the BVC (Colombian Stock Exchange).The MGC allows the public to buy and sell foreign securities listed on international markets, offering diversification and access to a broader investment landscape.
Recently, Microsoft became the final member of the “Majestic Seven” – Apple, Microsoft, Amazon, Alphabet (Google), Meta (Facebook), Nvidia, and Tesla – to become available through the MGC. This provides investors focused on the technology sector with the opportunity to invest in any of these seven influential companies. Current market activity, like Tesla’s recent quarterly earnings report, is already drawing investor attention.
How to Invest:
The process involves four key steps. First, investors must select a Stock Broker Company. Second, seeking professional advice is crucial, as these investments carry inherent risk. Davivienda Corredores emphasizes the importance of understanding the potential risks and rewards with the guidance of an investment advisor. Third, investors deposit funds and choose assets aligned with their stock market expectations. ongoing monitoring of the investment, ideally with continued professional guidance, is recommended.
Tax Advantages & Long-Term Outlook:
Investing through the MGC offers potential tax benefits. Carlos Guayara, co-founder of Trii, points out that investing directly on international platforms can result in capital gains taxes as high as 40%, while investments channeled through the BVC may be subject to a maximum of 10% under specific tax regimes, or potentially no tax at all.
Guayara stresses the importance of a long-term investment horizon. ”At least you have to give yourself five years with an investment,” he advises. Understanding risk tolerance and staying informed are also vital components of a successful investment strategy. “You don’t have to be an expert, but you do have to be aware of the news and have context,” he adds, encouraging potential investors to take action rather than remaining on the sidelines.
Beyond the Magnificent Seven:
The MGC isn’t limited to just the tech giants. Investors can also access companies across various sectors, including healthcare (Pfizer), finance (Bank of America), retail (nike, Falabella, Cencosud), automotive (Ford), and transportation (Uber), among others. All transactions are conducted in Colombian pesos, and the MGC offers both individual company shares and Exchange Traded Funds (ETFs) as investment vehicles. The BVC highlights the MGC’s potential to diversify portfolios and expand global investment opportunities.
MGC Performance – January to July:
Recent data from the BVC shows notable activity on the MGC. Between January and july, there were approximately 182,675 transactions involving 45,782 investors. By volume, Nu currently holds the largest share at 28.5%, followed by the Ib01 and Cspx funds with 33.1% and 19.4% respectively. Individual stocks also feature prominently, with Nvidia accounting for 8.8%, Google for 4.8%, Nike for 3.2%, and Apple for 2.2% of trading volume.
