This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Two Latin American ETFs For 2011

NEW YORK ( SmartStops) -- As the developed world continued to struggle out of the Great Recession in 2010, emerging markets performed relatively well, and they're expected to sustain this growth and performance in the coming year.

China continues to draw headlines and steal most of the attention, but in the coming year, Latin America may be the place to look.

Inflationary threats and real estate bubbles have forced China to increase its benchmark interest rates for the second time in three months and increase banking reserve ratios to reduce risk, which could hinder future growth.

A different song is being sung in Latin America as inflation is expected to remain subdued. This is expected to lower pressure on central banks to raise interest rates.

According to experts at Bank of America/Merrill Lynch, the true driver behind Latin America's prosperity in the coming year is expected to be domestic consumption, driven by increased purchasing power.

Many Latin American nations, such as Brazil, Chile and Peru, are rich in commodities. As demand for energy commodities such as crude oil and agricultural commodities such as corn and sugar remain insatiable worldwide, these nations are bound to reap the benefits of rising commodity prices. Increased commodity prices and underleveraged companies and households create the perfect mix to fuel domestic growth in these nations.

To gain access to Latin America, one could consider the following:

iShares S&P Latin America 40 Index Fund (ILF), which is a diversified play on Latin America that allocates 56.45% of its assets to Brazil, 24.53% to Mexico, 12.29% to Chile and 5.98% to Peru. ILF allocates nearly 26.2% of its assets to materials, 21.9% to financials and 12.8% to consumer staples.

SPDR S&P Emerging Latin America ETF (GML), which allocates 64.57% of its assets to Brazil, 20.58% to Mexico, 10.41% to Chile and 4.45% to Peru. GML devotes nearly 24.7% of its assets to materials, 19.9% to financials and 13.4% to energy.

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

--Written by Kevin Grewal of Smartstops.

>To contact the staff member responsible for this article, click here: Ross Snel.

>To submit a news tip, send an email to:

Readers Also Like:

Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at , where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs