Click to Enlarge YTD Return: -21%
The iShares MSCI Chile Capped ETF (ECH) is off 20% year-to-date, thanks in part to slowing exports in this emerging market — particularly in regards to commodities.
Chile investments saw brisk growth in past years thanks to a lack of opportunity elsewhere and a big influx of capital. However, that has led to some inflation fears — and coupled with a slowdown in China that has ruined commodity demand for many regions, it has been a tough road for Chile in 2013.
Chile’s central bank still expects modest growth in 2013 — about 4% to 5% when all is said and done — but expectations were much higher and investors shouldn’t expect this decent expansion to translate into profits.