ILF Profile
iShares Latin America 40 ETF is an exchange-traded fund designed to offer investors focused exposure to the largest and most liquid companies in Latin America. The fund aims to track the performance of the S&P Latin America 40 Index, which is comprised of 40 prominent companies from the region. These companies span a range of sectors, including energy, financials, materials, and consumer goods, reflecting the diverse economic landscape of Latin America.
The ETF generally invests at least 80% of its assets in the component securities of the S&P Latin America 40 Index and in investments with similar economic characteristics. This approach ensures that the fund maintains a portfolio closely aligned with the index, providing investors with a direct way to gain exposure to major Latin American markets. The index selection includes both local and multinational companies that have significant operations in the region, offering a broad view of the Latin American economy.
By focusing on the largest companies in Latin America, the iShares Latin America 40 ETF captures a substantial portion of the market capitalization and liquidity within the region. The fund's investment strategy aims to provide investors with growth opportunities associated with emerging markets while managing the inherent risks of investing in these developing economies. The diverse sector representation within the index allows for a balanced exposure to different economic drivers across Latin America.
The iShares Latin America 40 ETF is particularly suited for investors seeking to diversify their portfolios with exposure to Latin American equities. The fund’s alignment with the S&P Latin America 40 Index provides a reliable benchmark for performance, reflecting the economic and financial trends of the region. With its focus on major companies across various sectors, the ETF offers a strategic way to invest in the growth potential of Latin America while balancing sector and country-specific risks.
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