Another way of looking at ILF’s weakness is to evaluate the single-country funds representing the ETF’s geographic weights. That group is comprised of the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ), iShares MSCI Mexico Capped ETF (NYSEArca: EWW), iShares MSCI Chile Capped ETF (NYSEArca: ECH), iShares MSCI All Peru Capped ETF (NYSEArca: EPU) and the Global X FTSE Colombia 20 ETF (NYSEArca: GXG).
Of that group, the ETFs with exposure to oil-producing nations are EWZ, EWW and GXG. The average 90-day loss for that trio was 23.8% at the start of trading Tuesday. [Brazil’s IG Rating is Vulnerable]
ILF/EEM Ratio
Chart Courtesy: J.C. Parets, Eagle Bay Capital
Tom Lydon’s clients own shares of EEM and ILF.