Best Latin America ETFs
Resource-heavy emerging markets with high dividends
ETFs tracked
13
Avg TER
0.63%
Median Yield
3.70%
Latin America ETFs cover a small but volatile region: Brazil dominates, Mexico is the second-largest allocation, and Chile, Colombia, Peru, and Argentina fill out the long tail. The largest broad fund, ILF (iShares Latin America 40), holds about 60% Brazil and 25% Mexico — in effect, holding ILF means holding a 60/25 Brazil-Mexico sleeve more than a diversified LatAm exposure.
The regional return profile is shaped by commodities and currency. Latin American indices are heavy in materials, energy, and financials, which means they move with global commodity cycles more than with global equity trends. The Brazilian real and Mexican peso have each moved 20–40% against the dollar in recent years, which has frequently dominated local-equity returns for USD investors. Currency-unhedged LatAm ETFs have significantly lagged local-market performance over most of the past decade.
Dividend yields are notably high — broad LatAm ETFs distribute 3–5% annually, among the highest in global equity. That reflects the mature banks and resource producers that anchor the region's indices. Dividends are paid in local currency and converted to USD at distribution, so headline yield can fluctuate materially month to month.
Beacon ranks LatAm ETFs on cost, diversification, and risk-adjusted track record. The universe is small but meaningful for investors who want explicit emerging-Americas exposure outside the broader EM bucket.
Who this is for
- Emerging-markets investors wanting explicit LatAm concentration
- Value-oriented portfolios adding high-dividend EM exposure
- Not suitable for investors with short horizons — currency swings of 20%+ within a year are routine
Top 10 ETFs
Browse all 13 latin america ETFs
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Open screenerFrequently asked questions
- What countries are in a Latin America ETF?
- The largest LatAm ETFs hold roughly 60% Brazil, 25% Mexico, and 15% across Chile, Colombia, Peru, and Argentina. Index concentration means broad LatAm funds behave primarily as a weighted Brazil-Mexico bet. Single-country funds (EWZ for Brazil, EWW for Mexico) offer more targeted exposure.
- Why are LatAm ETF dividends so high?
- Heavy index weight in financials (Brazilian banks), energy producers (Petrobras), and materials companies that distribute high percentages of earnings as dividends. Total shareholder yield in the region is structurally elevated compared to US or European averages. Dividends are variable and paid in local currency.
- Are Latin America ETFs a good inflation hedge?
- Historically the region's commodity exposure has correlated with global inflation cycles, especially oil and metals prices. That helps during supply-driven inflation (2021–2022) but is less useful during demand-driven or monetary inflation. LatAm is not a reliable inflation hedge on its own.
- How volatile are Latin America ETFs?
- Very. Broad LatAm funds have experienced annual volatility of 25–35%, roughly double the S&P 500. Drawdowns of 30–50% have occurred multiple times in the past 20 years, driven by currency crises, political shocks, and commodity cycles. Position sizing should reflect this volatility.
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