sam
Lieutenant
Posts: 123
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Post by sam on Jul 28, 2021 1:09:28 GMT
2 major economies of Latin America are Mexico and Brazil. Most Latin American funds are heavily into these 2 countries. Any pros and cons investing in ILF vs splitting up into EWW (Mexico) or EWZ (Brazil). Long term return of ILF is not any better than 50/50 in Brazil/Mexico.
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Post by ignatz on Jul 28, 2021 15:01:14 GMT
Very tough to consider Latin America at all considering the returns over the last 10 or 15 years.
Even if things change, it won't matter much to a typical portfolio unless you make a sizeable purchase, rather than just a few percent of your portfolio.
I have no idea about the future....LA could triple in the next year for all I know. A gamble, like hitting 18 at the 21 table.
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Post by johntaylor on Nov 7, 2022 14:28:05 GMT
Have a bit of RLAIX
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Post by Ultima Thule on Jan 2, 2023 12:10:43 GMT
Off-topic pleaseI do not have any experience about funds, but about couple of equity, hope so. About BLX. On equity, I use €uro as base currency as thump rule (please do not mix about my postings on CEF-side or any). 19.8.2021 did shop some on $16,29, dividend yield (since €uro did "rotten" on last quartal) was "only" 6,54% on November. Another slot for me was 23.05.2022, with price tag of $14,27. Got some 7,52% yield for those under current currency pair after exchange fees. youtu.be/z2Pd3aG-JvU
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Deleted
Deleted Member
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Post by Deleted on Jan 2, 2023 13:16:02 GMT
sam, I have a small position in ILF which I will build on gradually and consider as a long term part of my international allocation - which I am slightly increasing this year. I think you might well likely do better splitting into Mexico and Brazil in the short term. The political environment is the main risk in my opinion in that area. I like having a bit of Argentina, Costs Rica, Peru, Ecuador, etc..Of course that comes with other countries that are more problematic. If we (the US) start concentrating more on manufacturing at home, I think the area might improve its GDPs. Particularly in Mexico. Might lead to more corruption though too.
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Post by FD1000 on Jan 10, 2023 4:25:44 GMT
Very tough to consider Latin America at all considering the returns over the last 10 or 15 years. Even if things change, it won't matter much to a typical portfolio unless you make a sizeable purchase, rather than just a few percent of your portfolio. I have no idea about the future....LA could triple in the next year for all I know. A gamble, like hitting 18 at the 21 table. In my world since the beginning, 10% has been the min, when I want to hold longer term. Why bother with 1-3%, or even 5%? |
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Post by belchingthealphabet on Feb 1, 2023 8:30:58 GMT
MXF. a CEF. Currently at -17.45% discount. Up 14.67% already in 2023.
Worth a look? I know, LatAm is streaky and iffy. But that discount looks attractive. Like buying it with built-in insurance. I only just uncovered it, myself. Don't own any. My all-world foreign holdings are just 9% of portfolio. I'm unsure if my source includes Canada as foreign or not. But if I own anything in Canada, I'd be surprised to find that out.
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Post by liftlock on Feb 2, 2023 3:53:04 GMT
MXF. a CEF. Currently at -17.45% discount. Up 14.67% already in 2023. Worth a look? I know, LatAm is streaky and iffy. But that discount looks attractive. Like buying it with built-in insurance. I only just uncovered it, myself. Don't own any. My all-world foreign holdings are just 9% of portfolio. I'm unsure if my source includes Canada as foreign or not. But if I own anything in Canada, I'd be surprised to find that out. Yes - MXF is showing very strong relative strength. cef.etfscreen.com/rsftrends.php?wl=0&s=default&t=6&d=i&vFf=dolVol21&vFl=gt&vFv=0&d=i&rs=1 |
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Post by liftlock on Feb 2, 2023 4:03:34 GMT
2 major economies of Latin America are Mexico and Brazil. Most Latin American funds are heavily into these 2 countries. Any pros and cons investing in ILF vs splitting up into EWW (Mexico) or EWZ (Brazil). Long term return of ILF is not any better than 50/50 in Brazil/Mexico. This would be difficult to predict ahead of time. I think it would be easier to base allocation decisions based on what is showing stronger relative strength. |
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Post by johntaylor on Jun 21, 2023 13:49:43 GMT
RLAIX 24% YTD, but just 5% average annual total return. Perhaps easier to buy stuff like Grupo Mexico and MercadoLibre and forget it?
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Post by anitya on Jun 21, 2023 19:39:06 GMT
ARGT - Argentina is up 79% this year. I have not looked into why it is up so much for a mismanaged country. Must make a good trading opportunity and not a good investment, unless something changed fundamentally about this country.
I would feel comfortable with Mexico more than any other Latam country because it is in our best interest to keep that country going.
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Post by bb2 on Jul 1, 2023 17:55:09 GMT
Mexico GDP growth has been down left to right since the 60's. (Hard to believe but look at the chart. data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=MX ) Same with the stocks - EWW flat for 10 years. MXF down 10% over 25 years. Where's NAFTA? Recent near-shoring craze might be done. Projected Mex GDP = 1.8%. They call it EWW (EW) for a reason. (Nice people though; working with them here and traveling in the 80's, (where else can you find a cheap huge room on the beach with a bare lightbulb in the middle). ) Looking a bit at India though. Next China? Modi visits Biden. India moves to the west? IFN is in Lyn Alden's div portfolio. CEF with a high div. Another thread. |
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Post by anitya on Jul 1, 2023 19:16:23 GMT
"They call it EWW (EW) for a reason." That was funny.
Near shoring, as a diversification away from China, started only in the last 3-4 years and was temporarily interrupted by Covid. I have spoken with US Managers who were moved to Mexico by their US tech employers to oversee their near shoring operations.
EWW chart looks comparable to SPY in 2019 but Covid took a big whack at EWW, which has now regained such that the total return of EWW and SPY from 1/1/2019 is about the same. I do not expect Mexico, as supplier / service provider, to do better than the US. I also did not expect Mexico to do better when there was frictionless trade between the US and China. But I would find it easier to invest in Mexico than any other Latam country stock market.
Given my portfolio's 2% international equity exposure, I never had dedicated Latam exposure.
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Post by roi2020 on Jul 1, 2023 19:54:02 GMT
I've never owned a foreign fund which invests exclusively in a particular region or a specific country. I prefer more diversified foreign funds.
That's not to say I would never consider investing a small percentage of my portfolio in such a fund.
There would have to be a very compelling reason (in my perception) to do so.
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Post by bb2 on Jul 2, 2023 15:31:07 GMT
seekingalpha.com/article/4592115-mexican-stocks-hit-8-year-highs-remain-bullish"The Mexican ETF has been one of the world's top-performing country funds in recent months. Reshoring is powering the move, and I believe we're in the early innings. I am bullish on the Mexico ETF but prefer to own individual Mexican equities with more torque to the manufacturing thesis." 3 years : Eww up 96% SPY up 45%. AAPL 112%. Maybe the tide has turned.
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