ishares S&P Latin America 40 Index (ILF) was one of the top performers for September, up 13.8% for the month and 47.1% year-to-date. This ETF focuses on leading companies in Brazil and Mexico (also top ETF performers for the month – iShares MSCI Brazil EWZ and iShares MSCI Mexico EWW) as well as some companies in Chile and Argentina.
Top sectors in ILF include industrial materials, telecommunication and energy – giving investors exposure to the energy driven economic boom that has been going on in Latin America. The largest holdings are in Petroleo Brasileiro ADR (energy), America Movil (telecommunications) and CEMEX (industrial materials).
The OECD expects Mexico’s economy to expand by around 4% in 2005 & 2006, due to falling inflation and steadily growing output. Brazil’s central bank has helped bring inflation down and forecasts 2006 inflation to be 3.5% – this below the target of 5.1%. The central bank also expects the economy to expand 3.4% this year.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.