While the rest of the world’s stock markets have fallen in 2022, the
iShares MSCI Brazil
exchange-traded fund has gained 16.5%. There are similar positive performances from Mexico and Chile ETFs.
After ugly returns in 2020-21 and a terrible 10 years overall, Latin America is back. Not that Wall Street seems to have noticed. The average mutual fund in Morningstar’s Diversified Emerging Markets fund category has only a 12% portfolio weighting in the region. By contrast, Asia, which is performing poorly, has a 74% weighting. Little wonder that the average emerging markets fund is down 19% this year.