ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Volatility Resource Channel
  2. Rates, Valuations Are Luring Investors to Latin America
Volatility Resource Channel
Share

Rates, Valuations Are Luring Investors to Latin America

James ComtoisApr 28, 2022
2022-04-28

Rising rates and low valuations have lured investors to Latin America in 2022, with Reuters reporting that Latin American stock and bond portfolios bringing in about $18 billion of foreign capital year-to-date through February. The war in Ukraine has increased risk aversion among investors toward some sections of European markets, which is also steering investors towards Latin America.

“Amid all the current volatility, Latin America may have some opportunities,” Alfonso Eyzaguirre, CEO of JPMorgan Chase Latin America and Canada, tells Reuters. “Some markets may be positively impacted by higher commodity prices, and also by a higher volume of investment flows by Emerging Market portfolio managers.”

While the MSCI All Country World Index was down more than 5% YTD as of March 31, its Emerging Markets Latin America Index was up more than 27%.

Latin America is also drawing in investor capital for the startups domiciled in the region. A report from the Financial Times notes that venture capital investment in Latin America’s companies more than tripled in 2021 to $15.7 billion, which data from the Global Private Capital Association show is more than the total for southeast Asia, Africa, and the Middle East combined.

Of that investor money, Latin America’s fintech disrupters brought in 39% of all investment flows, according to the Association for Private Capital Investment in Latin America. E-commerce drew in another 25% in inflows.

It also hasn’t hurt that the currencies within the region have been performing well this year. Those from Brazil, Colombia, Peru, and Chile so far being the best performing across emerging markets against the dollar.

Investors looking to invest in large and mid-size companies in the region may want to consider the Franklin FTSE Latin America ETF (FLLA ). The ETF has gained more than 12% year-to-date.

FFLA Chart Image Graph

Launched in 2018, FLLA tries to reflect the performance of the FTSE Latin America Capped Index, a market capitalization-weighted index of large and mid-size companies in Brazil, Chile, Colombia, Mexico, and Peru. Top holdings include Vale SA 9.9%, Petroleo Brasileiro SA 5.25%, and America Movil SAB de CV 4.72%.

FLLA has an expense ratio of 0.19%.

For more news, information, and strategy, visit the Volatility Resource Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X