Invest in Latin America with ETFs explained by professional Forex trading experts the “ForexSQ” FX trading team.
Invest in Latin America with ETFs
If you feel Latin America is an emerging marketand offers a strong investing opportunity, there are two ways to utilize ETFs to accomplish your goal. This includes Argentina ETFs, Brazil and Chile funds, and ETFs from Columbia, Mexico, and Peru.
- You can invest in a general Latin America ETF which targets many of the various countries within the region.
- You can purchase a country specific fund in Latin America for areas such as Peru, Argentina, Brazil, Chile, Mexico, and Colombia. Each of these countries had ETFs focusing specifically on their markets.
There are many reasons you may feel the Latin American Region is an investment opportunity.
- It can be considered a growing region or emerging market with upside opportunity
- The volatile political scenario can cause a lot of equity movement and there create trading opportunities
- You can diversify your foreign investment strategy by including multiple countries or target an entire region
- You can decrease general risk through diversity of a portfolio with multiple assets
- If you have risk in the Latin American region from other investments or assets, you can use this type of ETF as a hedge
So if you want to take advantage of the many benefits of ETFs and gain exposure to the Latin America region, here is a list of funds for your research.
List of Latin America ETFs
- BONO – Market Vectors LatAm Aggregate Bond ETF
- GML – SPDR S&P Emerging Latin America ETF
- FLN – First Trust Latin America AlphaDex Fund
- ILF – iShares S&P Latin America 40 Index ETF
- LATM – Latin America Small-Cap ETF (recently closed)
- LARE – Tierra XP Latin America Real Estate ETF
- LBJ – Direxion Daily Latin America 3x Bull Shares ETF
- EEML – iShares MSCI Emerging Markets Latin America ETF (recently closed)
As you can see there are a few variations of Latin American Funds for your portfolio.
LBJ is a leveraged fund, while LATM targets Small-Cap equities in the region. There is also a Latin American SPDR (GML) as well a bond fund (BONO). And of course there are the other Latin America ETFs as you can see.
However, if you want to drill down and have a more focused strategy that focuses on a specific country in the region, then the next set of funds might be worth a look. Here are list of ETFs broken down by specific countries in Latin America that are currently available on the market…
List of Argentina ETFs
- ARGT – Global X FTSE Argentina 20 ETF
List of Brazil ETFs
- BRAQ – Global X Brazil Consumer ETF
- BRAZ – Global X Brazil Mid Cap ETF
- BRF – Market Vectors Brazil Small-Cap ETF
- BZQ – UltraShort MSCI Brazil ProShares ETF
- DBBR – DBX Brazil Currency-Hedged Equity Fund
- EWZ – iShares MSCI Brazil Index ETF
- EWZS – iShares MSCI Brazil Small-Cap Index Fund
- FBZ – First Trust Brazil AlphaDex Fund
- UBR – Ultra MSCI Brazil
List of Chile ETFs
- ECH – iShares MSCI Chile Investable Market Index ETF
List of Colombia ETFs
- GXG – Global X/InterBolsa FTSE Colombia 20 ETF
List of Mexico ETFs
- EWW – iShares MSCI Mexico Investable Market Index ETF
- FXM – CurrencyShares Mexican Peso Trust ETF
- SMK – UltraShort MSCI Mexico Investment ProShares ETF
- UMX – Ultra MSCI Mexico Investable Market
- QMEX – SPDR MSCI Mexico Quality Mix ETF
List of Peru ETFs
- EPU – iShares MSCI All Peru Capped Index ETF
Hopefully, we not only see more ETFs for the regions above, but we also see new regions in Latin America get some attention. And before buying or selling any exchange traded fund, please make sure you conduct due diligence on each ETF and consult your broker or advisor for any questions or concerns.
Invest in Latin America with ETFs Conclusion
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