iShares MSCI Chile ETF: An Undercover Inflation Winner

Apr. 21, 2022 2:11 AM ETiShares MSCI Chile ETF (ECH)SQM, ECH3 Comments
BOOX Research
20.33K Followers

Summary

  • The iShares MSCI Chile ETF has outperformed this year given exposure to momentum in the materials sector.
  • Mining activity plays an important role in the Chilean economy which we see as a positive growth tailwind considering elevated commodity prices this year.
  • We are bullish on ECH which is a good option for investors to diversify into emerging markets in a fund that benefits from global inflationary trends.
Chile pinned on the map with flag

MarkRubens/iStock via Getty Images

The iShares MSCI Chile Capped ETF (BATS:ECH) offers targeted exposure to Chilean equities. While the South American economy faced significant disruptions during the pandemic, ECH has been a surprising winner, up by more than 20% this year. Indeed, several of the key underlying stocks

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This article was written by

20.33K Followers
BOOX Research run by Dan Victor, CFA specializes in covering small-caps and under-the-radar ideas. Dan brings more than 15 years of experience in financial services across multiple roles in research, investment management, and trading. Dan is also the winner of Seeking Alpha's 2023 stock market prediction contest-- beating out a field of 40 analysts by correctly forecasting the S&P 500's 24% gain that year. https://seekingalpha.com/article/4660791-2023-market-prediction-contest-winners

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ECH over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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