In recent years, investors have become increasingly more interested in emerging global economies. In addition to China and India, investors are also keenly looking at South America. Here we have identified the major latin exchange traded funds that maintain high liquidity and depict the real economic growth of Latin America.
Your Cheat Sheet to Latin Exchange Traded Funds
iShares S&P Latin America 40 Index (NYSE:ILF) is among the most traded Latin ETFs with average volume of 1.30 million shares per day. The respective ETF tracks the performance of S&P Latin American 40 Index, which consists of most liquid Mexican and South American equity securities. ILF consists of companies from Mexico, Brazil, Chile and Argentina.
Though a considerably low volume in comparison to other Latin ETFs, SPDR S&P Emerging Latin America (NYSE:GML) is still categorized as liquid enough to be included in the list, with an average volume of 24,401 shares per day. GML follows a passive management strategy and tracks the performance of S&P/Citigroup BMI Latin American Index.
Market Vectors Latin Amer Sm-Cap Idx ETF (NYSE:LATM) is liquid enough, with average traded volume of 5,752 shares per day. The fund tracks the performance of Market Vectors Latin American Small Cap Index. LATM is required to invest 80 percent of its total assets in companies that form the benchmark index.
iShares MSCI Brazil Index (NYSE:EWZ) is the most liquid among Latin ETFs with an average traded volume of 12.64 million shares per day. EWZ measures the price and yield performance of publicly traded stocks in Brazilian equity markets. The fund’s portfolio consists of basic materials, energy, financial, utilities, diversified, industrial, consumer cyclic & non-cyclic, short-term, and communications assets.
Market Vectors Brazil Small Cap ETF (NYSE:BRF) is also ranked among the Latin ETFs with the highest liquidity. The fund maintains the average traded volume of 239,383 shares per day, and tracks down the price and yield performance of Market Vectors Brazil Small Cap Index. The fund consists of small capitalization companies within the index.
iShares MSCI Mexico Inv. Mt. Idx. (NYSE:EWW) maintains the average traded volume of 2.54 million shares, making it one of the most liquid Latin ETFs. The fund tracks the price and yield performance of securities in Mexican market.
iShares MSCI Chile Inv. Mt. Idx. Fd (NYSE:ECH) is also highly traded with an average volume of 257,485 shares per day. ECH tracks the price and yield performance of the MSCI Chile Investable Market Index.
iShares MSCI All Peru Capped Index Fund (NYSE:EPU) is also among the highest ranked Latin ETFs by liquidity. The fund maintains the average traded volume of 710,104 shares per day. EPU tracks down the price and yield performance of MSCI All Peru Capped Index.
Global X InterBolsa FTSE Colombia 20 (NYSE:GXG) is a very noticeable Latin ETF and maintains strong liquidity with an average volume of 111,284 shares per day.