Investing in Latin America with ETF

Last time I introduce the list of ETF for getting exposure and investment in China. Today I would like to short list some exchange traded funds with focus on Latin America. The region is mainly commodity (energy and basic materials) driven and therefore if you believe in commodity bull that's the place to be.

Here are some ETF and funds for the whole region.

SPDR S&P Emerging Latin America (GML). This ETF tracks the total return performance of S&P/Citigroup BMI Latin America index. It consists of companies from Brazil, Argentina, Chile, Colombia, Mexico, Peru and Venezuela.

iShares S&P Latin America 40 Index (ILF). This fund is less regionally diversified and invest via ADR and GDR in Brazil, Argentina, Mexico and Chile.

And two closed ended funds. The Latin America Discovery Fund (LDF) from Morgan Stanley and Latin America Equity Fund (LAQ) from Credit Suisse Asset Management.



For investing in single country there are only three ETFs from iShares. iShares MSCI Brazil Index (EWZ), iShares MSCI Mexico Index (EWW) and iShares MSCI Chile Index (ECH) that invest 90% of assets in securities of its underlying MSCI indexes. Past 12 months track show the best performance for Chile followed by Brazil. Mexico is still in red numbers.

Additionally there are three closed ended funds; Mexico Fund (MXF), Mexico Equity and Income Fund (MXE) and Chile Fund (CH).

Accept equity based fund you can invest money in local currency in Brazil or Mexico with two currency ETF. CurrencyShares Mexican Peso Trust (FXM) and WisdomTree Dreyfus Brazilian Real Fund (BZF).