A new all-ETF model portfolio is now available to ETFdb Pro members; the LatAm Centric ETFdb Portfolio,which offers a broad-based, balanced portfolio of ETFs intended for investors who believe that Latin American economies offer a more favorable risk/return profile than the rest of the world.
Latin America is home to an abundance of natural resources, and in recent years has been home to some of the world’s fastest-growing economies as well. While much of the developed world is struggling to recover from the most recent financial crisis, economic prospects for Latin America are looking bright as increasing demand for raw materials continues to power the commodity-intensive economies of countries like Brazil and Peru. Additionally, this region is seeing increasing fertility rates coupled with rising rates of urbanization, all critical factors contributing to an ever-increasing consumer base.
The new LatAm Centric ETFdb Portfolio is designed for investors who want to build a well diversified portfolio constructed with a focus on Latin American equities as well as allocations to the continent’s fixed income markets. Through a combination of several equity ETFs, this ETFdb Portfolio goes beyond the economic giants of Brazil and Mexico; access to countries such as Chile, Peru, Colombia, and even Argentina enhances the long term return potential while diversifying assets across multiple markets. This portfolio will be inappropriate for risk-averse investors seeing as how investing in this economic region entails a high degree of risk, given the uncertainty that is associated with commodity producers and prices for raw goods. To this end, this portfolio is designed for buy-and-hold investors who have a long-term investment horizon and can stomach a good amount of risk in return for very promising returns down the line. Investors interested in region-themed portfolios should also consider our Asia-Centric ETFdb Portfolio.
Disclosure: No positions at time of writing.