Deutsche Debuts LatAm ETF

New fund targets the markets of Chile, Colombia, Mexico and Peru.
Reviewed by: Staff
Edited by: Staff

Yesterday, Deutsche Asset Management rolled out an ETF targeting Latin America’s stock markets. The Xtrackers MSCI Latin America Pacific Alliance ETF (PACA) joins a relatively uncrowded field that has only three unleveraged broad Latin American ETFs.

PACA has an expense ratio of 0.45% and lists on the NYSE Arca.

The fund’s underlying index targets the Latin American members of the Pacific Alliance, a list that includes Chile, Colombia, Mexico and Peru. Companies must be domiciled in, have their headquarters in or do the majority of their business in one of those four countries.

Fund Details

The methodology caps the weight of any single security issuer at 25% of the index with companies weighted at 5% representing no more than 50% of the index in aggregate, according to the prospectus.

The document notes that, as of the end of July, PACA’s underlying index included 141 companies from issuers located in Canada, Chile, Columbia, Mexico, Peru and the United Kingdom.

No other regional Latin American ETF covers quite that combination of countries, and PACA is cheaper than almost all the other broad Latin American ETFs, except for the Franklin FTSE Latin America ETF (FLLA), which launched earlier this year and only charges 0.19%.

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