5 Latin America ETFs to Watch in 2011 | ETF Trends

Latin America is one emerging market region to keep close tabs on. But the region has a lot of moving parts, which has resulted in varying performance in their exchange traded funds (ETFs).

Brazil. It’s been a flat year for Brazil. iShares MSCI Brazil Index Fund (NYSEArca: EWZ) is up a scant 0.3% in the last year as of this writing. Will changes in 2011 get things going again?

Dilma Rousseff will step in as the new president on Jan. 1, but analysts weren’t too keen on Finance Minister Guido Mantega retaining his job, reports Robert Plummer for BBC.  A few observers are also concerned that the economy could slow and that Rousseff will provide the government a bigger role in key areas, such as the oil industry, reports Terry Wade for Reuters. Watch Brazil closely as the new leadership steps in; this one could go either way.

Mexico. U.S. Secretary of State Hillary Clinton summed the country’s situation up by comparing it to the Colombian insurgency of the 1980s. Still, the country’s manufacturing sector is doing well, most notably car manufacturers. iShares MSCI Mexico (NYSEArca: EWW) is up 21.6% in the last year, and if its exports can stay strong, 2011 count bring more good to the economy.

Peru. Peru’s economy is expected to grow 8.3% for 2010, one of the highest rates in Latin America. Likewise, iShares MSCI Peru (NYSEArca: EPU) is up 53% in the last year. Investors should watch for any delays in mining or oil projects.