Argentina, once South America’s second-largest economy, is contending with its third sovereign debt default in less than 30 years and its second this century.
The latest default is predictably pressuring the Global X FTSE Argentina 20 ETF (NYSEArca: ARGT). ARGT, the lone Argentina ETF, is off 6.1% in the past month. However, ARGT still maintains a double-digit year-to-date gain and some investors are finding opportunities in Argentine equities despite the latest sovereign default.
Inflows into ARGT “have pushed total assets to about $36 million, according to data compiled by Bloomberg, report Boris Korby and Jenna M. Dagenhart for the newswire. About 60,000 shares, or $1.3 million, of the ETF changed hands daily over the last 30 days, Bloomberg reported.
ARGT had $34.6 million in assets under management as of Aug. 6, according to Global X data. That is up $1 million from July 30, the day Argentina officially defaulted. [Argentina ETF Shrugs Off Default Woes]
Last month, Third Point’s Dan Loeb said he believes Argentina will reach an agreement with its creditor and noted he is bullish on YPF (NYSE: YPF). The energy company is ARGT’s second-largest holding at a weight of nearly 12%.