Personal Finance

Corpbanca, BCA, joins the MSCI for Chile

The MSCI indices rebalanced last night, adding some interesting names and increasing the weighting of others. This is a bullish signal for tickers like BCA that are making the list.

Corpbanca (BCA ) is Chile's sixth-biggest lender and one of the few big Chilean ADRs that had yet to be included in MSCI's Chile index -- until last night, when it was finally added.

If you are looking for banking exposure in one of the strongest banking environments in the world, you cannot go too far wrong looking at Chile.

Banco de Chile (BCH) and Santander Chile (SAN ) are already well known to institutional players, with SAN in particular heavily represented in the Chilean ETF ECH .

In all, financials account for 11.30% of the ECH portfolio. SAN is definitely the leader, with a 4.77% share of the fund's assets as of October 29. Now that BCA has joined the index, the fund will need to buy $17 million shares to meet its target allocation on the stock. (Smaller non-ADR names fill out the fund's financial holdings.)

As a relatively new player to the index world, BCA may still have some relative upside to unlock even after ECH buys the shares it needs -- but at 2.2 times book value, it still is not what you would call cheap.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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