Although ILF is a multi-country fund, the primary drivers of its price action are Brazil and Mexico, which combine for 83% of the fund’s weight. Chile checks in at almost 10% while Peru and Colombia combine for just 10%, diminishing ILF’s exposure to recent bullishness in Colombian and Peruvian equities. [Peru ETF Surprises in a Good Way]
ILF holds 42 stocks, not 40 and its top-10 holdings read like the major components of EWZ and the iShares MSCI Mexico Capped ETF (NYSEArca: EWW).
ILF’s primary rivals are the SPDR S&P Emerging Latin America ETF (NYSEArca: GML) and the First Trust Latin America AlphaDEX Fund (NYSE: FLN). GML and FLN are smaller than ILF in terms of assets, but both hold more stocks and have outpaced ILF over the past three months.
ILF Weekly Chart
Chart Courtesy: J.C. Parets, Eagle Bay Capital