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Author: TMFTheSnake Big red star, 1000 posts Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 825  
Subject: New iShares Lat Am ETF Date: 3/2/2012 2:51 AM
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http://us.ishares.com/product_info/fund/overview/EEML.htm

iShares recently (mid-Jan) launched a new Latin American ETF to compete with its Latin American 40 Index ETF, or ILF (why, I don't know). The new ETF is based on the MSCI Emerging Markets Latin America Index (which seems a bit redundant to me - especially given the funds weightings).

With a portfolio of 125 stocks, EEML, as the new ETF is tickered, has more holdings than ILF (which, logically, has 40). The expenses are very close (0.49% for EEML to 0.50% for ILF) and the industry weightings are also quite similar.

EEML has slightly more exposure to Brazil and Mexico (85% of the portfolio vs 81% for ILF), but that results in less exposure to Chile and Peru. EEML has greater exposure to Colombia (4% vs 2%). Of course these weightings look to be based more on where companies are based or listed as opposed to where they do business, so returns won't be limited by borders as strictly as it may appear.

The main advantage I see EEML offering is broader diversification across companies, so there is less company risk and greater exposure to smaller companies (the avg mkt cap for ILF is $33B vs $10B for EEML). Given its broad portfolio, I also imagine it will evolve more as the region matures (perhaps dropping its emerging markets label at some point) whereas the consituents of the 40 Index are less likely to turnover very rapidly.

Just thought you all should be aware of a new option for gaining broad-based Lat Am exposure to your portfolio.
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