The Brazilian trend is picking up and leading to a sharp increase in asset banks in exchange-traded funds (ETFs) in Peru and Chile, as well as strong cash flows for the major capitals in the Andean region. The revenue of the famous Chilean funds for the year is about 14%, which leads to a strong increase in the risk appetite of the South American frontier economies.
Recent studies have shown that investment in the resource-rich South American countries is increasing. Investors are looking for more than one BRIC shell, where growth rates are limited and savings are made in consolidation mode. The global economic downturn has transformed investors into emerging and developing markets. It seems that the easiest option for most investors is India or China. After that you can calculate the latin american borders.
In the Andean region, countries often lack investment, and people focus their money mainly on Brazil. The region, which includes Chile, Peru and Colombia, has economies with a relatively modest rate of inflation compared to Brazil and a decent domestic product.
A more useful look – the Andean countries.
Chile offers a brilliant picture of political stability and increased consumer demand. The economy is growing at around 4.3% and accelerating to Brazil. Chile is the mark of the largest copper producer and exporter and is an example to follow when investing in these areas of South America. A long-term strategy for precious and industrial metals will find rational consumption that will improve overall sentiment, will lead to faster Andean ETF growth that will last for years and will depend on infrastructure growth and the emergence of middle-class consumers ,
Peru is not only the world’s largest silver and gold producer, but also a small, prosperous country with more potential than most developed countries and popular investment destinations.
Peru’s ETFs are available as larger products to click on this aspect of Latin America. According to the International Monetary Fund (IMF), Peru’s economic growth rate for 2012 is estimated at 5.9 percent, but slightly below expectations, reflecting the recent slowdown in the United States.
Key growth factors for commodities and commodities, as well as recent price increases, added more confidence to the capital markets, although most of the long-standing analysts in this category have shown clear confidence in this increase. expected in domestic consumption.
Colombia, on the other hand, is an attractive game because of its huge pool of natural resources, which are particularly rich in oil and gas reserves. As we have seen in the past, stock markets should mingle with the recovery of oil. Oil reserves such as Eco Petrol are already available to foreign investors through extensive indirect interactions (ADR) and exclusive Colombian funds. Favorable fiscal policies and solid government intervention have helped reduce inflation levels in the country, and markets have consistently posted notable black returns.
Policymakers in Colombia, Peru and Chile are working together to increase their geographic reach to attract foreign investment through a cross-border trading platform. The idea of a single stock market was a blow to investors as Mexico planned to join the Brazilian market. In this case, the Brazilian market could exceed the maximum limit of this united front of its first Brazilian counterpart Bovespa.
The Global X Andino ETF [Y] is a pure game in this region, with the highest asset allocation of the Chilean ETF, followed by the ETF in Peru and Colombia. The main indicator is that the FTSE Andean 40 accurately defines the financial performance of the region by tracking 40 of the most heavily traded securities of significant commercial interest in any of these three countries. The fund is anchored in Eco Petrol, one of the ETF’s largest assets, which accounts for more than 10% of the asset mix.