##  [# Argentina ETF Whipsawed by Outflows, Sell-Off and U.S. Rescue ](/sections/features/argentina-etf-whipsawed-outflows-sell-and-us-rescue) 

 

# Argentina ETF Whipsawed by Outflows, Sell-Off and U.S. Rescue 

 

 

ARGT rebounds on U.S. backing, but peso pressure lingers.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 Sep 24, 2025

 Edited by: ETF.com Staff

 

 

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The [**Global X MSCI Argentina ETF (ARGT)**](/argt) jumped this week after the Trump administration signaled it would backstop Argentina’s markets ahead of a crucial midterm vote in October.  
  
“Under President Milei, Argentina has taken important strides toward stabilization,” U.S. Treasury Secretary Scott Bessent wrote on X. “He has achieved impressive fiscal consolidation and a broad liberalization of prices and restrictive regulations, laying the foundation for Argentina’s historic return to prosperity. The United States stands ready to purchase Argentina’s USD bonds and will do so as conditions warrant. We are also prepared to deliver significant stand-by credit via the Exchange Stabilization Fund.”  
  
Bessent added that Treasury is in talks with Argentine officials on a $20 billion swap line with the central bank and is working with the Argentine government to prevent excess volatility.

## Turmoil in Argentina

The announcement came after weeks of turmoil in Argentina’s markets. A corruption scandal tied to President Milei’s sister, coupled with a local election loss for his party in Buenos Aires province, sparked fears that his party could stumble in the October midterm elections, stalling his reform agenda.

That triggered a wave of selling in Argentine stocks, bonds, and the peso, which briefly slipped below its trading band. The government reportedly spent more than $1 billion of reserves last week to defend the currency.  
  
For ARGT investors, it’s been a rollercoaster. The fund plunged more than 25% from its May peak to last week’s low before rebounding 8.5% on news of U.S. support. Year to date, the ETF remains down 8%.   
  
Assets under management in ARGT have fallen to just under $700 million from a peak of $1.2 billion earlier this year, as investors yanked $231 million in the past three months.  
  
Even so, the longer-term view tells a different story. Since Milei’s 2023 election victory, ARGT has nearly doubled, and its assets have swelled from $50 million to current levels.   
  
![](/sites/default/files/inline-images/ARGT.png)  
*ARGT has gained 85% since Milei's election win*  
  
Argentina’s equities surged in the immediate aftermath of his victory, fueled by optimism that the libertarian president would slash spending, privatize state enterprises, and restore fiscal and monetary discipline after decades of economic dysfunction.

Some of that promise has materialized. Inflation, which was running in triple digits when Milei took office, has cooled to 34% as of August. The government notched its first budget surplus in over a decade and moved swiftly to cut regulations and sell off state-owned firms.  
  
But confidence remains fragile, as is often the case in emerging markets. The peso, in particular, remains a pressure point. Holding it stronger than many view as sustainable helped rein in inflation, but forced the government to spend heavily from its limited foreign exchange reserves to prop it up, and left Argentina vulnerable to sudden swings in sentiment.

For now, the combination of U.S. backing and hopes of a favorable election outcome has sparked a relief rally. Whether that lasts will depend largely on whether Milei can maintain political control and stay the course on reforms

 
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 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


 Related Topics  [Argentina](http://www.etf.com/topics/argentina) 

 [Latin America](http://www.etf.com/topics/latin-america)