Global X MSCI Argentina ETF

ARGT

Market cap $792M

October's top ETF gainers included the likes of AMDU, ARGT, WGMI and HYDR. These ETFs soared as AI, crypto, and reform optimism drove markets higher.

Argentine President Javier Milei's latest win strengthens his hand in pursuing economic reforms with the backing of his government. The peso enjoyed a boost and reform hopes rose, but veterans like Hans Humes warn that austerity still squeezes Argentina's middle class and businesses.

Argentina's recent election results and President Milei's reforms have sparked a sharp rally in local stocks and renewed optimism for economic normalization. Global X MSCI Argentina ETF offers broad exposure to Argentina, with undervalued banks such as GGAL and SUPV and energy firms such as YPF presenting attractive entry points despite recent gains. Risks remain high due to political uncertainty, but fiscal surplus, falling inflation, and U.S. backing support a more optimistic outlook than past cycles.

Global X MSCI Argentina ETF (ARGT) rallied nearly 20% after Milei's party outperformed in Argentina's midterm elections, signaling market confidence in his policies. I upgrade ARGT to a hold rating, reflecting improved inflation and consumption trends, but recognizing persistent economic challenges and high fund concentration risks. Despite rapid market gains, Argentina's GDP has shrunk and inflation remains high, making ARGT suitable only for aggressive, risk-tolerant investors.

The win for Argentine President Javier Milei's party is rewarding investors who bet on the country.

Argentina's markets rallied sharply after President Javier Milei's party pulled off a surprisingly strong victory in Sunday's legislative elections. Dollar bonds and the peso both surged.

Argentina is facing a severe financial crisis as the peso has come under high downward pressure, impacting the Global X MSCI Argentina ETF. ARGT is an interesting ETF with solid fundamentals. However, the sociopolitical environment creates high risks. The United States has extended Argentina a $20 billion lifeline, but this may not be enough.

Persistent exchange rate pressures continued to weigh on Argentina's financial markets on Wednesday, straining the Treasury as proceeds from a special liquidation deal with agricultural exporters dwindle.

Argentina's peso weakened marginally on Monday while stocks edged up and bond prices rose in anticipation of news of financial aid from the U.S. Treasury and as political tensions in Argentina escalate before the country's midterm elections later this month.

Kevin Carter, EMQQ founder and CIO, and Dave Nadig, ETF.com president and director of research, join CNBC's Contessa Brewer to discuss the appetite for emerging markets this year and if the opportunity has passed, the SEC potentially allowing asset managers to add ETF share classes to mutual funds and the crypto ETF products that could launch before year-end.