Chile's exchange traded fund (
) is one of the top-performing single-country ETFs so far this
year. If you dig deeper, you might find a lot to like about this
By all appearances, Chile's economy has reached its pre-2009
growth levels. Economic activity in the country rose 6.6% year over
year in May. The drop-off in output caused by February's
appears to have come back, too.
Oxford Economics reports that
reconstruction is now adding to the rebound in domestic demand, the
main driving force behind the recovery. [
The Vast Appeal of Frontier Market ETFs.
Carla Pasternak for Street Authority
is also bullish on Chile right now:
- This country produces more copper than any other nation in
the world. It produces five times as much as the United
- Natural resources have certainly propelled the country, but
global business is also a huge factor. Many of the larger tech
companies have set up shop there.
- Its economy has rebounded strongly from last year's
recession. In fact,
forecasts that the economy will grow at +4.7% this year and +6.0%
Randy Woods for Bloomberg reports that
central bank policy makers increased the rate by 0.50% to 1.5% in
July, while benchmark interest rates will likely return to at least
neutral levels of about 5.75% in 18 months. Interest rate hikes are
needed to keep the economy from overheating while it recovers
Latin America's ETF Hot Spots.
iShares MSCI Chile Investable Mkt Idx (NYSEArca:
19% of this fund is materials
First Trust ISE Global Copper (
Although Chile is not a holding in this fund per se, many of the
mining companies in this fund have properties in Chile.
Global X Copper Miners (NYSEArca: COPX)
: Like CU, there is no exposure to Chile, but these miners have
For more stories about Chile, visit our
Tisha Guerrero contributed to this article.