ECH Is A Copper And Materials Bet On FX, Chilean Political Risks Reduced

Oct. 05, 2022 4:43 AM ETiShares MSCI Chile ETF (ECH)ECH3 Comments
Valkyrie Trading Society
Investing Group Leader

Summary

  • Chile was in the maw of socialism until suddenly it very much was not.
  • Support of free market logic is good for Chilean stocks and supports continued profits from Chilean industry.
  • Chilean Peso supported by Copper and EV thesis, and ECH also plays rising rates at banks and supported earnings growth in financials.
  • The Chilean peso is also supported by the rejection of the new socialist constitution, and ECH looks overall strong.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

Chile's flag above Santiago city

Felipe Brayner/iStock via Getty Images

The iShares MSCI Chile ETF (BATS:ECH) covers the main elements of the Chilean economy. It is Peso exposed on the FX front which is copper exposed in turn, exposed in commodity exposures like lithium and steel and also exposed to Chilean

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