This month, Barclays added another single-country exchange traded fund(ETF) to it’s growing family, iShares MSCI Chile Index Fund (ECH). It tracks the performance of the MSCI Chile Index which measures the broad based equity market performance in agriculture and mining sectors of Chile’s economy. Utilities make up 25.3% and industrials 22.4%. Here is why access through an ETF to this economy could be a good opportunity for investors.
Recently government officials and Chilean experts raised their expectations for the country’s economic growth from 5.3% to 5.7%. During 2006 the economy advanced 4%. Gary Gordon for ETF Expert points out that among a rapidly growing economy and the possible hike in interest rates, Chile is a major exporter of copper.
Chile is the world’s number one copper-producing nation. The state-run Codelco is also the world’s biggest producer. Chile has a growing following of dependence due to its commodity growth and the demand for this metal mixed with the rise in price, reports Mark Turner for Latin American Economonitor.
Meanwhile OECD has praised Chile’s economy with inflation remaining low amidst spikes. An education raise must be implemented to sustain the growth and ensure future generations continue the trend. One of the largest hurdles for the health of the economy is the income distribution, but through the organization, better education programs can help to dissolve that.
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.