Diversificación Internacional de Portafolios en Colombia por Medio de ETF

Abstract

The portfolio profitability depends mainly on the underlying risk associated, which is defined as the probability that the investment results may be different than expected. Thus, one way to mitigate the risk is through diversification. However, considering that the portfolio diversification helps to reduce the associated risk, international diversification portfolio provides additional opportunities to reduce risk. This research shows the benefits of international diversification portfolios. For this, investment portfolios formed only with Colombian financial assets, they will diversify with international financial assets such as, Exchange Traded Funds – ETF. We will estimate and compare the Value at Risk of each of the portfolios with traditional methodologies for identifying international financial assets that diversify the portfolios of the Colombian market better. The main finding is that the portfolios with the most liquid shares of the Colombia Stock Exchange decrease the risk when considering ETF that replicate international indices, specifically the S & P 500.