An exchange traded fund that invests in Chilean stocks has lost ground this week along with copper prices. Also, data released Friday showed Chile’s economic growth cooled in the third quarter.
Chile is the world’s largest copper producer. The red metal’s price has taken a hit this week on concerns Europe’s debt crisis my slow the global economy.
The iShares MSCI Chile Index Fund (NYSEArca: ECH) was down fractionally on Friday. The fund offers exposure to copper companies, which are the top holdings in the portfolio. Chile is responsible for one third of the global copper supply. The country’s currency, the peso, is tied to the price of copper. [Chile ETF Sidesteps Downgrade as Economy Grows]
Chile’s economy grew at a 0.6% rate in the third quarter from the second quarter, but rose 4.8% from the year-ago period.