ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $34.42 - New York symbol ECH

ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $34.42 (New York symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that mainly trade on the Santiago Stock Exchange. The fund’s largest holdings are Enersis SA (electricity), 10.3%; Empresa Nacional de Electricidad (electricity), 9.0%; Empresas Copec SA (conglomerate), 7.9%; S.A.C.I. Falabella (retail), 6.5%; Banco Santander Chile (banking), 5.8%; Cencosud SA (retailer), 5.8%; Empresas CMPC (pulp and paper), 4.7%; Colbun SA (utility), 4.6%; and Banco de Chile, 4.3%. The ETF’s industry breakdown consists of Utilities, 31.9%; Financials, 19.5%; Materials, 13.0%; Consumer Staples, 9.7%; Energy, 8.2%; Consumer Discretionary, 8.0%; Industrials, 4.4%; Telecommunication services, 2.5%; and Information Technology, 2.1%. The iShares MSCI Chile Investable Market Index Fund launched on November 12, 2007. It has a 0.64% expense ratio. Chile is the world’s biggest copper producer and a major supplier to Asian markets. Its dependence on resources is something of a drawback to investment, particularly as Asian economies have slowed and copper prices have dropped sharply. The country’s long-term outlook remains sound, but we see the iShares MSCI Chile Investable Market Index Fund as a hold.