Chile ETF: Boosted by Copper and a Big Invitation | ETF Trends

Investors have been optimistic about Chile’s exchange traded fund (ETF) this year, and they’re not alone. The country’s denizens are noticing the shift, too, as the Latin American nation moves from developing to developed.

This week, the Organization for Economic Cooperation and Development (OECD), a club of rich nations, gave Chile its official invitation to join. It’s a tangible sign of the changes the country has made since the 1980s, when it was ruled by a dictatorship. Juan Forero for The Washington Post reports that economists say this country of 17 million could become the first Latin American country to move into the developed category sometime in the next decade. [4 reasons to like Chile.]

The world’s top copper producer saw mining, energy and retail companies put some of their projects on ice this year because of the global financial crisis, reports Alonso Soto for Reuters. Some mining companies, however, have resumed planned investment in the country as copper prices recover, more than doubling so far this year. [How China’s development impacts copper’s prices.]

Pham-Duy Nguyen and Glenys Sim for Bloomberg report that copper futures for March delivery rose 4.4 cents,  to $3.3365 a pound on the New York Mercantile Exchange’s Comex unit. Earlier, the most-active contract touched $3.344, the highest price since Sept. 4, 2008. Copper more than doubled this year as China’s first-half imports reached records. Overall, copper is at its highest price in more than 15 months. [Why investors are finding Chile appealing again.]

For more stories about Chile, visit our Chile category.

  • iShares MSCI Chile Index (NYSEArca: ECH): up 85% year-to-date

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.