Chile Has Outperformed Other Emerging Markets and the S&P 500 This Year. Here’s How (CNBC)
Our lists: Chile ADRs, Chile ETFs and Chile Closed-End Funds.
- The iShares MSCI Chile exchange-traded fund (ECH) is up more than 3% year to date, while the U.S. benchmark S&P 500 is down more than 20% — officially trading in a bear market. There are several catalysts driving this outperformance, including the rejection of a proposed new constitution.
- A look inside the ECH shows that an overweight allocation to commodities helped the ETF this year, even as rising interest rates dinged emerging markets across the board. As of October, materials stocks made up roughly 30% of the ECH ETF, which has 25 holdings. The top holding is Sociedad Quimica Y Minera De Chile.
- “We think it’s like a stock picker’s dream market,” said Richard Cook, portfolio manager at Cook & Bynum Capital Management, calling it “a fantastic place for a good fundamental stock picker to be looking if they could get access.”
- BCA Research’s Budaghyan said most of the rally is limited to large-cap stocks, likely driven by buying from foreign investors. READ MORE
- Volatility Storm Adds to Pain for Chile’s Battered Markets (Bloomberg via Yahoo)
- Latin American Stocks to Consider (Aberdeen)
- Chile’s Draft Constitution is Seriously Flawed (FT)
- Dreaming of Salvador Allende (and 35% Corp Tax Rates) in Chile (WSJ)
- AmCham Chile’s President Talks Up “Consensus,” “Shared Goals,” “Internal Dialog…”
- The S&P Indices Versus Active (SPIVA) Latin America Scorecard (S&P Dow Jones Indices)
- Analysis: Chile’s Sliding Peso Reflects Tough Battle vs Rampaging Dollar (Reuters)
- Copper Mining Opportunities in Peru and Chile (Mobius Blog)
- Latin America Slow Descent into Interventionism (Daniel Lacalle)
- Chile Argues It Can Bring Change Without Scaring Investors (Bloomberg)
- Emerging-Market Capital Outflow Risk Rises With US Dollar (Bloomberg)
- Emerging Market Investors: Drop a Bric and Pick Up a Bimchip (Financial Times)
- Copper ETFs Rally on Economic Recovery, Chile Supply Concerns (NASDAQ)
- Mercado Libre CFO Talks E-commerce Markets, Fintech Services, Crypto, Outlook (Yahoo! Finance)
- Pricey Tortillas: LatAm’s Poor Struggle to Afford Staples (AP)
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