Headlines about the country defaulting have not slowed its stock market.
Despite being on the cusp of default, Argentina's equity market is absolutely surging. The lone ETF targeting the Argentine equity market, the Global X FTSE Argentina 20 ETF (ARGT | D-24), has returned more than 13 percent over the past quarter.
ARGT's streak trumps the returns on broader funds such the iShares MSCI Emerging Markets ETF (EEM | B-99), a proxy for emerging markets, and the iShares MSCI Frontier 100 ETF (FM | C-80), a proxy for frontier markets, which returned 7 percent and 6 percent, respectively. Argentina is classified as a frontier market.
While ARGT's recent returns have been impressive, investors would have done even better if there were a currency-hedged ETF available: The Argentine stock market is actually up about 29 percent over the past three months, but a sagging Argentine peso has detracted from returns.
ARGT tracks an index of 20 ADRs that "directly participate in the Argentine economy."