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Latin America ETF (ILF) Hits New 52-Week High

Zacks Equity Research
Updated
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Investors seeking momentum may have iShares Latin American 40 ETF ILF on radar now. The fund recently hit a new 52-week high. Shares of ITA are up approximately 28.3% from a 52-week low of $26.43/share.


But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.


ILF in Focus


ILF focuses on providing exposure to equities of the Latin American region. From a geographical perspective, it has high exposure to Brazil (55.73%), Mexico (27.02%) and Chile (10.80%). It charges 49 basis points in fees per year and has top holdings in Itau Unibanco Holding ADR, Banco Bradesco ADR and Vale ADR with 8.97%, 6.92% and 6.86% allocation, respectively (as of August 17, 2017) (see all Latin American Equity ETFs here).

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Why the Move?


Given the fund’s high exposure to Brazil, it is greatly impacted by events in the largest Latin American economy. Most recently, the Brazilian government renewed tax breaks for export and import of goods relating to the oil industry. The Brazilian economy is heavily dependent on exports of commodities and this news led to a rally in Brazilian stocks and the Brazilian real.


More Gains Ahead?


Currently, ILF has a Zacks ETF Rank #3 (Hold) with a High Risk outlook, so it hard to get a handle on its returns. Moreover, the ETF has a weighted alpha of 19.50. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.


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ISHARS-LATIN 40 (ILF): ETF Research Reports
 
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