The Andean region, composed of the fast-growing economies of Peru, Colombia and Chile, boasts one of the best-performing stock markets in the world. You can now get exposure to all three in one fell swoop with the Global X FTSE Andean 40 (NYSEArca: AND).
Though there are three single-country funds tracking each of the countries individually, Global X CEO Bruno del Ama points out that there’s an agreement pending to merge their stock markets. If the deal goes through, it would be the second-largest stock market in Latin America, just behind Brazil. It would also be 50% larger than Mexico’s.
AND further rounds out the growing options for getting exposure to Latin America. The three funds that track those economies individually are Global X Colombia (NYSEArca: GXG), iShares MSCI Peru (NYSEArca: EPU) and iShares MSCI Chile (NYSEArca: ECH).
Taking a regional approach to ETFs is ideal for investors who don’t want to shoulder the same level of risk that often comes with single-country funds.
AND gives most of its weight over to Chile, which accounts for nearly 50% of the fund. Colombia gets 28% of the weighting and Peru has 22%. Given Latin America’s wealth in natural resources, AND also counts basic materials as the largest sector, with 28.4% of the weight. Financials is weighted at 21.3%; oil and gas, 14.7%; and consumer services, 12.9%.
AND’s expense ratio is 0.72%.
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.