How to invest in Chile?


The easiest way to invest in Chile is to invest via funds. One is the iShares MSCI Chile Index (ECH) and the other one is the closed-end fund – CH.

1. ECH was launched back in November 2007. The fund has some 43M in assets.ECH has the following portfolio allocation:

Utilities – 23%
Financials – 9%
Industrials – 24%
Materials – 17.4%
Others – Balance

So financials are very small compared to most other country etfs. The fund has an expense ratio of 0.74%.

Chile, being a resource-rich country in Copper is heavily dependent on strong commodity prices.

2. CH is a closed-end fund that invests purely in Chile.The fund is no trading at a discount of about 6%.

In the past 5 years CH has performed well with over 100% in 2003.The fund has a similar portfolio like ECH. Total assets are over $220 M and the expense ratio is rather high at 1.96.

3. There are a few Chile ADR stocks available as well. For more details checkout my previous article.


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