Chile offers promise for aggressive investors

Article Excerpt

After a strong 2021 fourth quarter, the Chilean economy has likely slowed this year, amid higher inflation and interest rates. Meanwhile, the country faces challenges: the possibility of new COVID-19 variants, higher energy prices pushed up further by the conflict in Ukraine, and uncertainties around the recent election of left-wing candidate Gabriel Boric as president. However, longer term, the economy seems sound, and that includes benefitting from strong prices for the country’s copper, lithium, and other minerals. ISHARES MSCI CHILE ETF $28.76 (New York symbol ECH; TSINetwork ETF Rating: Aggressive; Market cap: $551.7 million) aims to track the MSCI Chile Investable Market Index. Its stocks, trading on the Santiago Stock Exchange, represent Chile’s top firms. Basic Materials (mostly mining) account for 30% of its assets, while Financial Services (26%), Utilities (18%), and Consumer Defensives (14%) are other key segments. The ETF holds a concentrated portfolio of 24 stocks. The top 10 holdings make up 73% of its assets. They are Sociedad Quimica Y Minera de…