Latin America ETFs 2026: The Complete Comparison

iShares Latin America 40 ETF

ILF is the default allocation vehicle for broad Latin American equity exposure. It holds the 40 largest companies across the region and offers the lowest expense ratio among the major LatAm ETFs at 0.47%.

The concentration issue is real, though: roughly 59% of the fund sits in Brazil and another 25% in Mexico. That means only about 16% covers Colombia, Chile, Peru, and everything else combined. If you want genuine regional diversification, ILF alone won't get you there.

Q1 2026 was strong for ILF, posting a gain of over 16% — largely driven by Brazil's continued rally. Over the trailing twelve months, total return has exceeded 50%, making this one of the best-performing regional equity vehicles globally.

Best for: Investors who want a single-ticker LatAm allocation and are comfortable with heavy Brazil/Mexico weighting.

iShares MSCI Brazil ETF

EWZ is the liquid giant of Latin American ETFs, with over $10 billion in assets and an average daily volume exceeding 24 million shares. It recently hit a new 52-week high above $41.60 in mid-April 2026, with a one-year total return of nearly 76% including dividends.

The fund is concentrated in commodity and banking names — Petrobras, Vale, Itaú Unibanco, and Nubank among its top holdings. At a P/E under 10x, Brazil's market trades at a significant discount to both developed markets and many emerging market peers, even after a strong rally.

The investment case rests on monetary easing (Brazil's central bank has been cutting rates), deepening trade ties with China and the EU, and the transformative potential of the EU-Mercosur free trade agreement. Key risks include the 2026 presidential election cycle, rising government debt, and commodity concentration.

Franklin FTSE Brazil ETF

FLBR tracks essentially the same Brazilian large- and mid-cap universe as EWZ but at one-third the cost — 0.19% versus 0.59%. For buy-and-hold investors, that 40-basis-point gap compounds meaningfully over time. The fund has seen strong inflows throughout 2025-2026 as cost-conscious allocators discover it.

Best for: Long-term holders who want Brazil exposure at the lowest possible cost. EWZ remains better for active traders who need deep options liquidity.

iShares MSCI Mexico ETF

Mexico trades at a premium to the rest of the region for good reason: it's structurally tethered to the US economy. As US companies diversify supply chains away from Asia, Mexico's industrial north absorbs the manufacturing capacity — a multi-decade trend under USMCA.

EWW's holdings reflect this theme. Unlike the commodity-heavy indices further south, it's dominated by consumer staples (Walmex, FEMSA), industrials (airport groups GAP, ASR, OMAB), and telecoms (América Móvil). This makes EWW more of a consumer and logistics play than a commodity bet.

YTD 2026 performance of around +10% is solid if less spectacular than Brazil's rally, but the lower volatility and defensive sector mix appeal to risk-adjusted return seekers.

Best for: Investors who want LatAm exposure with lower commodity sensitivity and a US-economic-cycle anchor.

Global X MSCI Colombia ETF

Colombia is the most aggressive value play in the region. COLO trades at under 9x earnings with a nearly 5% dividend yield — and the fund's AUM has grown to $134 million from under $100 million a year ago, signaling growing institutional interest.

The fund is essentially a bet on Colombian interest rates and oil prices. Financials make up roughly 39% of the index, with utilities at 23% and energy around 17%. Ecopetrol remains the "political football" — the Petro administration's stance on halting new oil exploration caps the stock's upside, but the high dividend yield provides a floor.

The peso has strengthened roughly 15% against the dollar over the past year, which boosts returns for dollar-based investors but makes future entry points somewhat less attractive in USD terms. The 2026 SMLMV increase of 23% signals strong wage growth that supports the domestic consumer story.

Best for: Aggressive value investors willing to accept political and liquidity risk for deep valuation discounts and high yield.

Global X MSCI Argentina ETF

After delivering triple-digit returns in prior years on the back of President Milei's reform program, ARGT has cooled to a more modest 6.6% YTD in 2026. The deceleration is natural after the market re-rated dramatically from crisis-level multiples.

The critical structural issue with ARGT is concentration. MercadoLibre (MELI) often accounts for over 20% of the fund, making this less of a pure "Argentina macro" play and more of a LatAm e-commerce play with some Argentine financial exposure bolted on. Investors buying ARGT for Argentine banks and utilities may be inadvertently taking a massive position in a single tech stock.

The elevated P/E (~30x) largely reflects MELI's growth premium and doesn't represent the broader Argentine market valuation. Stripping out MELI, the underlying Argentine equities trade at much cheaper multiples.

Best for: High-conviction investors on Argentina's reform trajectory. Understand you're also getting heavy MELI exposure.

iShares MSCI Chile ETF

Chile's investment case is a derivative of the global energy transition. The country controls roughly 25% of global copper reserves and is the second-largest lithium producer. SQM (Sociedad Química y Minera) is a dominant holding, linking the ETF directly to global lithium prices.

After a flat Q1 2026 (one of only a few LatAm ETFs to dip early in the year), ECH has recovered strongly and is now up 13.1% YTD. The banking component — Banco de Chile, Banco Santander Chile — provides stability and income, with sector dividend yields often exceeding 5%.

Best for: Investors with a long-term energy transition thesis who want commodity exposure through a politically stable jurisdiction.

iShares MSCI Peru and Global Exposure ETF

Peru is one of the world's top copper producers, and EPU gives investors direct exposure to that thesis. The fund also captures significant banking and consumer exposure through holdings like Credicorp and InRetail.

At around 11x earnings with a roughly 5% yield, EPU offers a compelling income-plus-growth profile. It's less liquid than the major country ETFs — average daily volume is significantly lower — so it's better suited for patient, position-building investors than active traders.

Best for: Income-oriented investors who want copper exposure with a dividend anchor.

Conservative — "One and Done"

ILF 100% — The simplest approach. You get the 40 largest LatAm companies in a single ticker at 0.47% expense. You're overweight Brazil and Mexico, underweight the Andean markets, but you don't have to rebalance between country funds. This is the approach for investors who want LatAm in their portfolio without making it a research project.

Balanced — "Core + Satellites"

FLBR 40% / EWW 30% / COLO 15% / ECH 15% — Build your own regional allocation at a lower blended cost than ILF. FLBR at 0.19% is your Brazil core. EWW gives you Mexico's nearshoring tailwind. COLO and ECH provide deep value and green metals exposure that ILF structurally underweights. Blended expense ratio: roughly 0.38%.

Aggressive — "Max Conviction"

COLO 30% / ARGT 25% / EWZ 25% / EPU 20% — This portfolio maximizes exposure to deep value (Colombia), reform upside (Argentina), commodity beta (Brazil, Peru), and income (all four yield meaningfully). It's also the most volatile — expect drawdowns of 20%+ in any given year. Only for investors who can stomach the ride and have a five-year-plus horizon.