Up 36% year-to-date, the Global X MSCI Argentina ETF (NYSEArca: ARGT) is one of this year’s best-performing single-country ETFs. Data suggest investors have recently been renewing their interest in ARGT, the largest of the two ETFs dedicated to Argentine equities.
Earlier this year, investors piled into ARGT, betting that index provider MSCI would promote the country to the widely followed MSCI Emerging Markets Index from the frontier markets classification. However, MSCI delayed that promotion, a move that sent some investors scampering out of the Argentina ETF.
A new catalyst is on the horizon. This weekend, Argentina holds mid-term elections, which some market observers believe will be an opportunity for President Mauricio Macri to move forward with his pro-markets agenda.
Market observers seem inclined to wager that Argentina’s President Mauricio Macri could mean big changes in the economy after years of tepid growth. The pro-market Macri has pledged to quickly reverse much of the previous heavy-handed economic policies and open up the economy that has been posting back-to-back years of near stagnate growth.
“Investors are raising their exposure to Argentina ahead of Sunday’s midterm elections. Bets are increasing that President Mauricio Macri will be able to push ahead with his pro-business reform agenda,” reports Bloomberg.