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A Pleasant Surprise in Latin America (ECH, JJC)
However, there are other single-country ETFs tracking Latin American equity markets,
and some of those funds have been around for a while, including the iShares MSCI Chile Capped ETF (ECH).
When it comes to single-country exchange-traded funds (ETFs) tracking Latin American equities markets, the funds tracking Brazil
and Mexico, the region’s two largest economies, usually get the most attention from investors.
ECH has a three-year standard deviation of 15.8 percent, which is slightly below the comparable metric on the MSCI Emerging Markets Index
and about 1,100 basis points below the standard deviation on ILF.
That means ECH is also easily outperforming the MSCI Emerging Markets Index and the iShares Latin America 40 ETF (ILF).
Now almost 10 years old, ECH, the lone U. S.-listed ETF dedicated to Chilean stocks, is home to nearly $491 million in assets under management.
A labor strike at a copper mine earlier this year hampered Chile’s economic growth in February, leading
the country to post its worst month of economic activity since 2009, according to Reuters.
The country could try to boost its exports of goods such as fruits or fish to nearby markets,
but these lower-value items won’t even begin to compensate for the lost copper-related export revenues," according to Stratfor.