The iShares MSCI Chile Capped ETF (NYSEArca:ECH) is up 36% year-to-date. Although Chile is viewed by some market observers as the most advanced and open South American economy and it is undeniably home to Latin America’s highest sovereign credit rating (AA-), there is also no denying the country’s dependence on copper exports as a driver of government revenue.
“Chilean miner Codelco said prices could test record highs above $10,000 a ton as the supply-demand balance shifts to “substantial” deficits from 2018. Goldman Sachs Group Inc. also predicts the metal will continue to benefit from synchronized global growth,” according to Bloomberg.
Since the start of the fourth quarter, investors have pulled $7.78 million from JJC. The bellwether copper ETN has seen nearly $9 million in year-to-date outflows.
For more information on Copper ETFs, visit our Copper category.