4-Star ETFs Poised to Pop: iShares MSCI Chile

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares MSCI Chile Investable Market Index Fund (NYS: ECH) has earned a respected four-star ranking.

With that in mind, let's take a closer look at iShares MSCI Chile and see what CAPS investors are saying about the ETF right now.

iShares MSCI Chile facts

InceptionNovember 2007
Total Assets$503.2 million
Investment ApproachSeeks to replicate the MSCI Chile Investable Market index, which measures broad-based equity market performance in Chile.
Expense Ratio0.61%
Dividend Yield1.8%
Year-to-Date / 1-Year / 3-Year Returns(27.6%) / (21.8%) / 25.1%
Top Holdings With High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Empresa Nacional de Electricidad (NYS: EOC) (8.3%) 

Sociedad Quimica y Minera (NYS: SQM) (8.1%) 

Enersis (NYS: ENI) (7.8%)

Similar ETFs

iShares MCSI Brazil (NYS: EWZ)  

SPDR S&P Emerging Latin America (NYS: GML)  

Sources: Morningstar and Motley Fool CAPS. 

On CAPS, 97% of the 157 members who have rated iShares MSCI Chile believe the ETF will outperform the S&P 500 going forward. These bulls include alee1227 and AjOrellana. This past summer, alee1227 tapped the ETF as a hidden opportunity: "Chile is often overlooked, but I like this play."

iShares MSCI Chile even sports a respectable expense ratio of 0.61%. That's exactly in line with Latin America ETFs iShares MSCI Brazil and roughly comparable to SPDR S&P Emerging Latin America.

CAPS member AjOrellana elaborates on the bull case:

There are a number of reason will I think this EFT will outperform the S&P 500. First, the Chilean economy is fundamentally strong, with a fiscally conservative government, and hawkish central bank. ... Now this is the main reason why I am extremely bullish on ECH: China (and other emerging economies) are growing like crazy, and there are consumer raw materials in vast quantities. Chile's exposure to Chinese growth will benefit the Chilean economy. As the Chilean economy continues to grow so will its other sectors (such as utilities, industrial, materials, and consumer staples).

What do you think about iShares MSCI Chile, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track the iShares MSCI Chile?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Sociedad Quimica y Minera. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story