Main European ETF tracking LATAM continues on Key Level
Main European ETF tracking LATAM continues on Key Level
The iShares MSCI Latin America UCITS ETF, which has more than 350 million dollars in assets under management is struggling to break a key resistance level.
Since 2015, Latin American companies, much like most countries in the region, have struggled to break free from economic stagnation. Presently, Mexico’s robust economic performance is driving the index collectively.
Colombia and Mexico stand out as the best performers in a region mired in stagnation for many years. Brazil and Argentina notably exhibit low or no growth. Most per capita GDPs in the region were higher 15 years ago.
The iShares MSCI Latin America UCITS ETF reflects this reality, but Latin America may be facing a new opportunity for asset price recovery. This ETF, primarily comprising Brazilian and Mexican companies, is at a critical juncture.
If it manages to break resistance, we could be facing a historic opportunity to execute a classic “breakout” trading strategy that could drive the asset price to levels seen in the early 2010s.
The primary target, in such a scenario, would be $20 per share for LTAM.
LTAM tracks the MSCI Latin America Index, which includes companies from Brazil, Mexico, Chile, Peru, and Colombia, among others. This ETF is only available in Europe and has tax advantages.
However, another way to trade LATAM as a whole is with the more liquid ETF iShares Latin America 40 (ILF), which consists of the 40 largest and most liquid stocks in Latin America. This ETF is indeed available in US brokerage firms.
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