ETF Of The Week: Buying LatAm On The Dip

November 08, 2019

Highly Concentrated Portfolio

Over the past three months, ILF has risen 9%, making it the best-performing broad-basket Latin America ETF (although several single-country ETFs have outpaced it).

However, the fund still underperforms broader emerging market ETFs, such as the iShares MSCI Emerging Markets ETF (EEM), which has risen 12% over the same period.


Source: StockCharts.com; data as of Nov. 7, 2019

 

Something investors should keep in mind about ILF is that, with only 44 holdings, it is an extremely concentrated, top heavy fund. Its top holding is Itau Unibanco Holding S.A., at 10% of the portfolio. Those looking for a broader cross section of sectors and countries in Latin America probably ought to look elsewhere.

Contact Lara Crigger at [email protected]

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