The Getulio Vargas Foundation (FGV) and the Institute for the Economic Research at the University of Munich have conducted a study and found that Latin America has entered a period of “good” recovery, according to People’s Daily Online.

Latin America registered an Economic Situation Indicator (ICE) of 5.6 in January 2010, compared to 5.2 in October – ICE levels go from one to nine and any figure above a five represents positive economic signals. Latin American countries that registered an ICE above 5.0 include Brazil at 7.8, Chile at 7.4, Peru at 7.3, Uraguay at 7.0 and Argentina at 5.3. [Reasons to Consider Brazil.]

With that, representatives of 32 countries are meeting in Cancun, Mexico in an attempt to create a regional organization that excludes the United States and Canada, reports Tracy Wilkinson for The Los Angeles Times. The new bloc is expected to promote better integration and shared economic development among Latin American and Caribbean countries. [How to Cope with Risks in Latin America.]

For more information on Latin America, visit our Latin America category. If you’re interested in investing in Latin America, take a look at the ETFs below. Narrower funds may give you more pure-play exposure to various countries in the regions, while the broader ones lower your overall risk. [6 Things You're Missing If You Don't Have Global ETFs.]

• iShares MSCI All Peru Capped Index (NYSEArca: EPU)
• Global X/InterBolsa FTSE Colombia 20 (NYSEArca: GXG)
  
• Shares MSCI Brazil Index (NYSEArca: EWZ)
• iShares MSCI Chile Investable Mkt Idx (NYSEArca: ECH)
• iShares MSCI Mexico ETF (NYSEArca: EWW)
• SPDR S&P Emerging Latin America (NYSEArca: GML): Brazil, 66%; Mexico, 20.5%; Chile, 9.7%; Peru, 3.7%
• iShares S&P Latin America Index (NYSEArca:ILF): Brazil, 61.1%; Mexico, 23%; Chile, 10.4%; Peru, 3.3%

Max Chen contributed to this article.

Prior the financial crisis, Latin America held record-high international reserves, manageable current account imbalances, low debt and a financial system that was not exposed to “toxic” assets or reliant on foreign funding, comments Shelly Shetty for Poder 360. The region recovered rather quickly, aided by expansionary economic policies, a jump in commodity prices and a stream of external private capital inflows. [Latin America ETF opportunities.]

Fitch Ratings firm calculates a regional growth of 3.6% in 2010 after a contraction of 2.9% in 2009. The recovery is expected to be supported by a better global financial and economic environment, increases in commodity prices and more capital inflows. The ratings firm projects a faster rebound in Brazil, Chile, Peru and Panama where growth will likely reach a minimum of 4% in 2010 as a result of a recovery in consumer and business confidence. [A potential not yet realized in Brazil.]

However, Fitch believes that economies in Mexico and some countries in Central America and the Caribbean will be fettered by the drastically lower exports, tourism and overseas workers’ remittances from the United States. Mexico is expected to expand 3% in 2010. Columbia is believed to produce modest growth. Argentina, Ecuador and Venezuela have been constrained by a lack of private investment, but Argentina may bounce back faster because of its relations with Brazil. [Will complacency slow Mexico down?]

Latin America could face appreciating currencies as more capital inflows to the region, commodity prices rice, domestic interest rates increase and a faster economic growth compared to developed markets. The other problem the region could face is its timing in withdrawing fiscal stimulus. Still, the governments have lots of resources to draw upon if their debt becomes a little extended.

For more information on Latin America, visit our Latin America category.

• iShares MSCI Chile Index (NYSEArca: ECH): up 85.1% year-to-date

• Global X/InterBolsa FTSE Columbia 20 Index (NYSEArca: GXG): up 92.6% since inception

• iShares Latin America 40 Index (NYSEArca: ILF): up 89.7% year-to-date

• iShares MSCI Mexico ETF (NYSEArca: EWW): up 57% year-to-date

• iShares MSCI All Peru Capped Index (NYSEArca: EPU): up 33.2% since inception

Max Chen contributed to this article.

Usually, investors are speaking the “B” word when it comes to investing in Latin America – that’s Brazil. [Where are BRIC ETFs headed?]

But you’d be unwise to ignore the other countries. The region has many resource-rich economies that are worth your time and portfolio. The diversification benefits are plentiful as well, since many of these countries have low correlations. [Why Brazil is hot.]

Gary Gordon for ETF Expert reports that Peru, for instance, is a resource-rich country that recently received increases in its credit rating to investment-grade. Remember that Greece, Turkey and the Middle Eastern economies are all facing potential defaults.

Many of the Latin countries are also precious metal havens: Peru is rich in copper, zinc and silver. Chile is one of the world’s largest copper producers. Colombia exports oil, coal and coffee, and has been diversifying its trading partners.

The diversification is limitless, so open up your mind to some Latin flavor. Your portfolio may thank you. [4 reasons to think about Chile.]

For more stories about Latin America, visit our Latin America category.

• Global X/InterBolsa FTSE Columbia 20 Index (NYSEArca: GXG): up 92.6% since inception

• Claymore BNY/Mellon BRIC ETF (NYSEArca: EEB): up 82.8% year-to-date

• iShares Latin America 40 Index (NYSEArca: ILF): up 87.4% year-to-date

• iShares MSCI Mexico ETF (NYSEArca: EWW): up 57.7% year-to-date

• iShares MSCI All Peru Capped Index (NYSEArca: EPU): up 33.3% since inception

In general, Latin America has shown remarkable immunity to the latest global credit crunch and market turmoil. Jason Mitchell for Midas Letter reports that the strict macroeconomic policies pursued in Colombia and Peru over the past five years has started to take root, and both could become dominant economies on the world stage.

Nathan Gill for Bloomberg reports that Peru has reached a “point of inflexion” after shrinking more than it has in eight years. Now, resurgent demand could push the growth rate to 3.2% in the second half of 2009. To ensure this growth, the government has implemented a $3 billion stimulus package and cut the key lending rate to 1.25%.

Robert Kozak for The Wall Street Journal reports that Peru’s GDP shrank 1.1% in the second quarter.

Colombia is also one of Latin America’s fastest-growing economies between 2003 and 2008, expanding at an average of 5.4% annually. Much of the growth was spurred by rising demand for commodities, including oil, coal and gold. While some Latin American countries grew faster in this time frame, Colombia managed to stave off inflation.

• iShares MSCI All Peru Capped Index (NYSEArca:EPU) up 32.2% since inception

• Global X/Inter Bolsa FTSE Columbia 20 ETF (NYSEArca: GXG) up 37.2% since inception

• iShares S&P Latin America 40 (NYSEArca: ILF) up 68.2% year-to-date

For more stories about Latin America, visit our Latin America category.

Indonesia boosts some solid basic fundamentals including a reform minded government, an upwardly mobile population, a healthy banking system and a resource-rich economy. But that doesn’t mean Indonesia’s ETF is without risks. The country was also one of a lucky few that posted a positive growth for the first quarter. Morgan Stanley feels that Indonesia should be included in the BRICs (Brazil, Russia, India and China), to form the BRIICs.

• Market Vectors Indonesia ETF (IDX): up 70.8% over three months

Chile is comfortably positioned for the eventual recovery of global economies as a global exporter of copper. The country’s GDP is holding up, the poverty rate is going down and growth is expected to rise on increased public spending. Economists expect Chile to sidestep a recession, and by year’s end, it could be one of the world’s 30 richest countries

• iShares MSCI Chile Index (ECH): up 51.9% year-to-date

Peru is one of the most recent countries to enter the ETF family. The latest ETF from iShares is the MSCI All Peru Capped Index Fund (EPU) which has an expense ratio of 0.63%. The ETF tracks the MSCI All Peru Capped Index. Peru touts the lowest annual inflation of any other Latin American country and has low fiscal and external threats. Direct investment is on the rise and the trend could continue well throughout 2009. Peru’s credit rating is higher than that of Brazil’s.

• MSCI All Peru Capped Index Fund (EPU)

For more information on emerging market countries, visit our emerging markets category.

Max Chen contributed to this article.

The fund’s top sector weighting is in materials, at 65.2%. That’s followed by financials, 15.2%; utilities, 5.9%; and consumer staples, 5%. There are 25 components overall.

Peru touts the lowest annual inflation of any other Latin American country and has low fiscal and external threats. The macroeconomic fundamentals are strong, and Peru’s credit rating is higher than Brazil’s. Increased foreign direct investment has put Peru on the radar screen of many investors, and this trend could continue throughout 2009. Peru’s projected growth rate this year is set at 4%, a slowdown from 9.8% in 2008.

This is the first ETF to target Peru. Another one is expected soon from new fund provider Global X, which currently has a Colombia-focused fund.

For more stories on new ETFs, visit our new ETF category.