South America ETF Industry Market Size

South America Exchange Traded Funds (ETF) Market Analysis

The South America ETF Industry in terms of Greater Than-5 is expected to grow from USD 9.24 billion in 2024 to USD 11.79 billion by 2029, at a CAGR of greater than 5% during the forecast period (2024-2029).

South America-based ETFs are an attractive option. Mainly, there are 5 sovereign states that have gained traction in this market. The Central Bank of Brazil stated its intent to increase support for the real currency in the wake of the pandemic, and many asset management firms argued that this emerging market was a prime cheap opportunity. Bank stocks and sector-related exchange-traded funds have been hard hit and have fallen behind the broader market, but this segment may be a cheap opportunity.

ETFs trade like stocks, fluctuate in market value, and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns. Currently, the second-largest economy in South America, Argentina, has made some policies recently that made them market-friendly to foreign investors. Some notable ETFs on offer from this region are iShares MSCI Brazil Capped ETF, WisdomTree Brazilian Real Strategy ETF, iShares MSCI Brazil Small-cap ETF, VanEck Vector Brazil Small-cap ETF, and others.

The post-COVID-19 scenario of the South American ETF industry is showing signs of recovery. As economies stabilize and investor confidence improves, there is a growing interest in South America-focused exchange-traded funds (ETFs). These ETFs provide investors with exposure to the region's markets, including Brazil, Argentina, and Chile. While there may still be some volatility, the industry is gradually bouncing back, presenting opportunities for investors looking to diversify their portfolios in South America.