7 Reasons to Like Chile and Its ETF

Jun.30.09 | About: iShares MSCI (ECH)

Chile’s ETF, which launched in November 2007, hasn’t had the easiest of rides. But now that we’re in 2009, the future is starting to look a little brighter. Here’s why the country should be on your radar.

Gary Gordon for ETF Expert explains the differences between Chile’s ETF and its closed-end fund, The Chile Fund (NYSEMKT:CH), and how the performance of the two funds compare now that the economy appears to be recovering.

Meanwhile, let’s look at some of the reasons why many investors could begin to find Chile appealing once again after a slowdown that left no emerging market untouched.

  • Chile is the world’s strongest exporter of copper, a metal that stands to benefit from a global recovery, thanks to its copious use in wiring and pipes
  • Its gross domestic product (GDP) is as strong as any in Latin America
  • Its budget is being kept in check
  • By year’s end, Chile may be the first South American country to join the list of the world’s 30 richest countries, writes Andres Oppenheimer for The Miami Herald
  • Its economy has grown steadily for the last two decades
  • Chile boasts a poverty rate of 13%, down from 39% in 1990
  • Chile just increased public spending by $5.7 billion this year to boost growth

iShares MSCI Chile Index (NYSEARCA:ECH): up 54.6% year-to-date