The universe of emerging markets is not homogeneous. Each country or region is in a different situation, despite being classified as “emerging” or “developed”.
The MSCI Emerging Markets (EM) Latin America index includes mid- and large-cap stocks from 5 countries (Brazil, Chile, Mexico, Colombia, and Peru) that constitute the emerging countries of Latin America. With 89 constituents, the index covers approximately 85% of each country’s free float-adjusted market capitalization.
Overall, the MSCI LATAM has tended to perform similarly to other emerging market indices, such as the MSCI EM (Emerging Markets Index) and the MSCI EAFE (Europe, Australasia, and Far East Index). This is because emerging markets in general are influenced by similar factors, such as the monetary policy of major central banks, commodity prices, and trade tensions between countries.
However, there are times when the MSCI LATAM behaves differently from other emerging market indices. For example, during periods of political or economic uncertainty in Latin America, MSCI LATAM can be affected more significantly than other emerging market indices.
The reopening in China, dollar peaks, and diminishing recession risks in Europe and the U.S. have boosted emerging markets.
Historical performance of emerging market indices
Below we compare the historical performance of the MSCI global emerging markets with the MSCI E.M. Eastern Europe, MSCI E.M. Asia Ex Japan, and MSCI E.M. LATAM.
|YTD||1 month||3 month||1 year||3 years|
|MSCI E.M. Eastern Europe||3,48%||6,04%||23,39%||-74,53%||-72,51%|
|MSCI E.M. Asia ex Japan||3,64%||3,85%||12,81%||-17,61%||-7,20%|
|MSCI E.M. LATAM||2,51%||0,46%||-1,13%||4,98%||-25,22%|
Weekly Market Report, A&G Banca Privada