Chile ETF Up 65% Year-to-Date

Looking to further expand its reach across the globe, iShares is taking aim at Chile. While the firm's new proposed instruments will be aimed at Chilean investors, U.S. investors have been able to access the nation's markets with the iShares MSCI Chile Investable Market Index Fund (ECH - commentary - Trade Now) since 2007.

Today, the nation is the most prosperous and stable country in South America. Throughout the 1990s, it was continent's fastest-growing nation. The nation boasts low poverty rates, high quality of life and leads Latin America in human development

Chile's economy is heavily reliant on its copper exports. The state-owned Codelco is currently the largest copper-producing company in the world. While high copper prices in the past have helped to stem the nation's growth, reliance on a single industry may lead to significant challenges in the future. In order to tackle this issue, the Chilean government has made an effort to expand the nation's exports to include timber, seafood and fruit.

The ECH is representative of the Chilean economy, with nearly 50% of its assets allocated to utility and mineral companies. Top holdings include a 12.44% stake in Empresas COPEC, a 10.85% stake in Empresa Nacional de Electricidad (EOC - commentary - Trade Now) and a 10.01% stake in Enersis (ENI - commentary - Trade Now). The fund has performed well in 2009, gaining 65% year-to-date for the period ending Oct. 12.

At the time of publication, Dion had no positions in the stocks mentioned.

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At the time of publication, Dion had no positions in the stocks mentioned.

Don Dion is president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.