Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Why You Shouldn’t Get Excited About Gold Price Mini-Rally - 26th Jan 21
The Truth About Personal Savings Everybody Should Know and Think About - 26th Jan 21
4 Economic Challenges for 2021 - 26th Jan 21
Scan Computers 2021 "Awaiting Picking" - 5950x RTX 3080 Custom PC Build Stock Status - 26th Jan 21
The End of the World History Stock Market Chart : Big Pattern = Big Move - 26th Jan 21
Stock Market Recent Sector Triggers Suggest Stocks May Enter Rally Phase - 26th Jan 21
3 Top-Performing Tech Stocks for 2021 - 26th Jan 21
5 Tips to Manage Your Debt - 26th Jan 21
Stock Market Intermediate Trend Intact - 25th Jan 21
Precious Metals Could Decline Before their Next Attempt to Rally - 25th Jan 21
Great Ways of Choosing Good CMMS Software for a Business - 25th Jan 21
The Dark Forces behind American Insurrectionists - 25th Jan 21
Economic Stimulus Doesn’t Always Stimulate – Pushing On A String - 25th Jan 21
Can Karcher K7 Pressure Washer Clean a Weed Infested Driveway? Extreme Power Test - 25th Jan 21
Lockdown Sea Shanty Craze - "Drunken Sailor" on the Pirate Falls Crazy Boat Ride - 25th Jan 21
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Three Ways to Invest In South America with ETFs

Companies / Emerging Markets Aug 19, 2010 - 08:16 AM GMT

By: Ron_Rowland

Companies

Best Financial Markets Analysis ArticleIn last week’s column we looked at some ETFs focused on the booming countries of Southeast Asia. Today we’re turning our spyglass in a different direction. We’re looking at the southern portion of the western hemisphere — South America.

If you participated in the Weiss Global Forum earlier this week, you heard us talking about Brazil as the hub of its continent. The parallels with China are very interesting …


  • Both China and Brazil are much larger than their neighbors, in land mass and population.
  • Both countries have long coastlines, massive mega-cities, vast interiors and huge river basins.
  • And both were relatively impoverished nations for decades and have vaulted into the modern world practically overnight.

There’s another common thread, too. As has happened in the China region, the smaller nations surrounding Brazil are feeding off the biggest fish in the pond. Meaning that the wealth Brazil earns from its trade with the developed world spreads throughout the region.

Brazil is making its neighbors rich.
Brazil is making its neighbors rich.

Funds targeting Brazil and Mexico have been around for years as have funds encompassing all of Latin America (both Central and South America). And earlier this summer I showed you Six Ways to Brazil through ETFs.

These are a good start. But if you don’t pay attention to the rest of the countries in the region you could miss out on some golden opportunities. Until recently though, there was no easy way for U.S.-based investors to zero in on the key nations of South America.

Where are those opportunities? I’ll tell you about three of them. And with new ETFs coming out all the time, I expect we will have more alternatives soon. For now, consider these three as ways to balance out your emerging market portfolio …

South American Alternative #1: iShares MSCI Chile (ECH)

Chile is the long skinny country on the Pacific coast of South America. Unlike the other two countries we will talk about below, Chile doesn’t actually share a border with Brazil. Nonetheless, the two are close commercial partners — both became members of a regional free-trade pact in 1996.

At the same time, Chile has a strong, vibrant economy in its own right. A market-oriented economy and fiscally sensible government have combined with rich natural resource deposits to make Chile a leader in the region.

ECH is the only ETF focused on Chilean stocks. It came out in late 2007 and will have its three-year anniversary later this year. The shares more than doubled in the period between October 2008 and January 2010 and this year have headed even higher.

South American Alternative #2: iShares MSCI All Peru (EPU)

Peru lies north and west of Brazil. The mighty Amazon River originates in the Peruvian Andes before flowing through Brazil’s rainforest.

Peru’s economy was once simply another Third World basket case. But that all changed in the 1990s when President Albert Fujimori launched a plan to convert the nation into a free-market system. He was largely successful, and Peru has been booming ever since.

Minerals are a major export for Peru.
Minerals are a major export for Peru.

EPU is dominated by materials stocks, reflecting the nation’s key mining sector. Copper, gold and zinc are some of Peru’s top exports. The government has been cooperative in allowing global miners to partner with local firms, and the result has been a win for everyone.

South American Alternative #3: Global X/InterBolsa FTSE Colombia 20 (GXG)

Here’s something I bet you didn’t know: Colombia is the second-most populous nation in South America, exceeded only by Brazil. It was one of the first areas to be colonized by Spanish explorers. After independence, Colombia ruled over the area that is now Panama right up until 1903.

Cartagena was a prize for the Spanish explorers, now it's an up and coming business center.
Cartagena was a prize for the Spanish explorers, now it’s an up and coming business center.

The Colombian economy faced a serious challenge from drug-related violence in the 1980s and 1990s. More recently, the government gained the upper hand as much of the drug trade moved elsewhere. Now Colombia is modernizing quickly.

The local economy is still highly dependent on natural resource exports (did you know that 70 percent of U.S. cut flower imports come from Colombia?). But the manufacturing and financial sectors are growing fast too.

GXG took off like a rocket after coming out in early 2009 — right near the global market lows. Since then the shares have doubled in value and gone even higher! GXG may look frothy after all these gains. But if Colombia continues to grow, it could shoot up even more. This is definitely an ETF to keep on your watch list.

As you can see, ETFs give you ways to get involved in South American growth that go far beyond the borders of Brazil. Check out ECH, EPU, and GXG and think about whether they fit into your portfolio.

Best wishes,

Ron

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules