As emerging markets stocks and exchange-traded funds tumbled over the past several years, Latin American equities were a big reason why. With emerging markets being a lagging, hated asset class, disdain among investors for Latin American stocks ran high.
That disdain morphed into love in March, as investors poured into Latin America ETFs as the region's equity markets turned from emerging markets laggards to leaders. For example, the iShares S&P Latin America 40 Index (ETF) (NYSE: ILF) is up about 20 percent year-to-date, a performance that is better than triple the returns offered by the MSCI Emerging Markets Index.
The Tumultuous Relationship Calms, But For How Long?
The $681.5 million ILF is a quasi-regional ETF. In reality, investors embracing this fund are making a bet on Brazilian and Mexican stocks as Latin America's two largest economies combine for over 82 percent of the ETF's weight.
/www.benzinga.com/trading-ideas/long-ideas/16/03/7781121/renewed-rendezvous-investors-head-to-this-regions-etfs alt=Renewed Rendezvous: Investors Head to This Region's ETFs>Full story available on Benzinga.com
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