The Dividend Withholding Tax rate for foreign investors in Chilean equities used to be 35%. This rate has been reduced to 23.9041123%. This is a welcome news for ADR holders.
Below is the YTD returns of Chilean ADRs trading on the US exchanges:
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Source: BNY Mellon
Last year Lithium miner Soc. Quimica y Minera de Chile (SQM) had an astonishing run. It remains to be seen if this year also will be great for SQM investors.
Disclosure: Long BCH
European stocks are performing better so far this year than US stocks. However over the past 5 years and the long run they they have lagged US markets. For instance, the DAX index is up 6.85% YTD while the S&P has increased by 3.88%. Over the past 5 years, the S&P 500 has shot up over 3 times that of the DAX as shown in the chart below:
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Source: Google Finance
Similarly the S&P has crushed the DAX in the long by an astonishing margin.
Source: Google Finance
No wonder most US investors prefer domestic equities than any overseas markets including Germany.
Related ETFs:
Disclosure: No positions
Callan has published their famous The Periodic Table of Investment Returns 2022 edition. This chart shows the annual returns of key indices ranked in order of performance for each calendar year. Last year when most equities declined cash equivalent was the king with a return of 1.46%. REITs were the worst as rising interest rates and other factors crushed the sector. US large caps almost ended the year in bear market.
Click The Callan Periodic Table of Investment Returns 2004 To 2023: Chart for the latest chart.
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Source: Callan
You can download The Callan Periodic Table of Investment Return in pdf format at Callan’s site by clicking the above link.
