“More than half of the past week’s inflows came on the day that Rodrigo Valdes, a former economist for Barclays PLC and BTG Pactual, was appointed finance minister to replace Alberto Arenas,” according to Bloomberg.
Markets have embraced the appointment of Valdes. ECH is up 4% over the past month, nearly double the gain of the iShares Latin American 40 ETF (NYSEArca: ILF) over the same period.
When looking at ECH, the ETF’s correlation to copper prices is not readily apparent. The ETF’s materials sector weight is just 11.5%, or 650 basis points below the fund’s weight to bank stocks and well below the almost 28.5% allocated to the utilities sector. In fact, there is just one materials stock found among ECH’s top 10 holdings. However, ECH’s five-year correlation to JJC is 0.6.
Over the past 90 day, the $296.4 million ECH is up 10.6%, or 180 basis points ahead of EWZ, the second-best performer among the largest Latin America single-country ETFs.
iShares MSCI Chile Capped ETF
