iShares Latin America 40 ETF

ILF

Capitalización de mercado USD 4093 M

IMF urges Latin America to cut debt, lift productivity while tailwinds last

As measured by the iShares Latin America 40 ETF (ILF), the region is handily beating the S&P 500 year to date, up 15% compared to the S&P's 11% move

Vanguard Total International Stock Index Fund is up 15.7% year to date, maintaining a moderate premium over the U.S. stock market's 14.0% gain via the SPDR S&P 500 ETF. But the return spread is narrowing, and the recent surge in U.S. stocks could be an early sign that international equities will soon fall behind in relative terms.

iShares Latin America 40 ETF is reiterated as a "Buy," supported by attractive valuation and technical support near the 200-day moving average. ILF trades at a low 9.8x P/E, offers a 2.90% yield, and is heavily weighted toward Financials and Energy, with no Tech exposure. Momentum has cooled, but cyclical sector dominance and July seasonality suggest a favorable near-term risk/reward profile.

Although not uniform across the region, a number of Latin American equity markets have outperformed the S&P 500 year to date (YTD). Emerging markets in Peru, Colombia, Brazil, and elsewhere have all beaten the S&P's 9% YTD returns, thanks to a combination of factors, including higher prices for certain commodities, growing AI-related demand for outputs such as copper, lithium, and nickel, and favorable company valuations.

The iShares Latin America 40 ETF has surged over the past year, along with many individual country markets in the region. Latin America benefits from commodity booms and favorable political trends, but ILF may miss out on key growth themes like rising middle-class consumption. The portfolio is heavily tied to Brazil and doesn't offer much diversification around the region's smaller countries.

A tentative U.S/–Iran ceasefire has reignited risk appetite across emerging markets, driving more than $1.1 billion into U.S.-listed EM ETFs and snapping a four-week streak of heavy outflows, reported Bloomberg.

Jay Pelosky says geopolitical tensions are accelerating a rotation out of U.S. equities and into international markets. He discusses new leadership in emerging markets as AI‑linked names like Nvidia (NVDA) experience stock de-ratings.

Markets have been uneven to start 2026. Major indexes have struggled to make sustained progress, former technology leaders have traded lower, stress in areas such as private credit has added to the noise and a hot conflict in the middle east compounds the uncertainty.

iShares Latin America 40 ETF offers exposure to the region's forty largest public companies. ILF's portfolio is heavily concentrated, with approximately 82% in Brazil and Mexico, limiting true regional diversification. Recent performance and long-term track record are strong, precluding a sell rating despite structural concentration concerns.