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Diversify Investments With A Latin America ETF


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Why Now Might Be The Time To Invest In A Latin America ETF

Latin America ETFAs economies in emerging markets in Asia slow, it may be time for investors to consider an investment in a Latin America Exchange Traded Fund (ETF), Latin America ETF, to diversify their emerging markets investment exposure.  While emerging economies in Asia have strong connections with European economies that are mired with debt and economic problems, emerging economies in Latin America, which includes Central and South America, are more oriented towards the developed economies in the United States and Canada.

Slowing growth in Asia and Europe that has taken down stock prices around the world may provide Latin America ETF investment opportunities for those sitting with their investment money on the sidelines.  Investors searching for region-specific ETFs that may present good buying opportunities for an eventual recovery in the world economy may want to consider investing in a Latin America ETF.  After suffering through its own debt crisis in the 1980s, Latin America has emerged as one of the fastest growing regions of the world with fast growing economies and rising wages and living standards.  It is this backdrop that makes investing in a Latin America ETF enticing.

How to Invest In A Latin America ETF

Several Latin America ETFs trade on United States stock markets that can be utilized to make a Latin America ETF investment.  While some Latin America ETFs focus on particular countries in Latin America, the following Latin America ETFs offer broad exposure to Latin American equities from a variety of Latin American countries.

  • iShares S&P Latin America 40 Index Fund (ILF) – ILF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Latin America 40 Index.
  • Global X FTSE Andean 40 ETF (AND) – AND seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Andean 40 Index.
  • Market Vectors Latin America Small-Cap Index ETF (LATM) – LATM seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Market Vectors Latin America Small-Cap Index.
  • SPDR S&P Emerging Latin America ETF (GML) – GML seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of an equity index based upon the Latin American emerging markets.
  • Direxion Latin America Bull 3X – Triple-Leveraged ETF (LBJ) – LBJ is 300% leveraged ETF that seeks investment results that correspond generally to three times the price and yield performance, before fees and expenses, of the S&P Latin America 40 Index.

Of course, there are no guarantees that Latin America economies will escape the world economic slowdown, which could impact the price of Latin America ETFs; however, in the long run economic growth in Latin America should be strong and an investment in a Latin America ETF should benefit from the strong regional growth.

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