Latin America's ETF Hot Spots | ETF Trends

Recent pullbacks aside, Latin America’s exchange traded funds (ETFs) are still worthy of a little attention. Several of them, in fact, remain above their 200-day moving average and have held up relatively well through the market’s tumult.

Only three Latin America-focused ETFs have a accrued a five-year track record,  and their average returns are an impressive 305%, writes Nick Sudbury for IFAonline. [Will Your Money Be Safer In Latin America ETFs?]

The iShares MSCI Brazil (NYSEArca: EWZ) was up 389% over the five-year period. EWZ has 78 holdings and an expense ratio of 0.74%. The largest holding is the oil producer Petrobras, which is 20% of the portfolio. The fund has 51% exposure to energy. Brazil’s economy is forecast to expand 6% this year, aided by its large reserves of natural resources and a growing middle class.

The iShares S&P Latin America Index (NYSEArca:ILF) was up 317% in five years. The fund has an expense ratio of 0.5% and very liquid. Country allocations include Brazil, 63%; Mexico, 22.4%; and Chile, 11%.

The Global X/InterBolsa FTSE Columbia 20 Index (NYSEArca: GXG) has been one of the top Latin American funds in the last year, with a return of 87%. Colombia makes up only 1% to 3% of the Latin American funds, despite being one of the largest economies in South America. The country is classified as a frontier market, but it has a fairly diversified economy and the market index has been less volatile than the S&P 500.

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

  • SPDR S&P Emerging Latin America (NYSEArca: GML)
  • iShares MSCI Chile Index (NYSEArca: ECH)
  • iShares MSCI Mexico ETF (NYSEArca: EWW)
  • iShares MSCI All Peru Capped Index (NYSEArca: EPU)

Max Chen contributed to this article.

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.