Latin American ETFs - high performance, lots of risk
[June 2009] Well, it's been quite a ride since I originally wrote this lens.
On the positive side, Latin American ETFs remain a handy tool for diversifying your portfolio. They not only give you exposure to currencies other than dollar, but also allow you to play emerging markets, or commodities ( Chile ETF - linked to the price of copper - one of Chile's main exports ).
Latin American Exchange Traded Funds
So what are the ETFs in question?
ILF, MXE, EWZ
Brazil ETF - the superperformer
One of the BRIC countries, it constitutes (along with India) the democratic and law abiding half of the BRIC ( the other two, Russia and China are dictatorships, where rule of law does not exist).
This makes Brazil an attractive market for investments. Being in South America, it is reasonably close to US, and away from major conflict areas in the world. As a result of these favorable factors, Brazilian economy has been doing well, and Brazilian ETF - ticker symbl EWZ - has had superb performance over the last few years - since January 2003 to January 2008 it is up 1000%.
Latin American ETF - no slouch either.
If you want exposure to Latin American economy,
and want to hold large, rich companies - this is the way to go. Since it is not a single country ETF, it gives you more diversification accross the region.
Mexico ETF - a mixed bag.
However, due to low trading volume, it can be quite volatile. As of April 2008, it is trading at roughly $25 - but within past 12 months, it was as high as $51 - so it has lost 50% of its value.
Thus if you decide to bet on MXE - be sure to have your protective stops in place.
More info about ETFs
There are 3 categories of flaws that one needs to think about:
1) low liquidity
2) US market impact
3) index imbalance
with the exception of QQQQ, SPY and DIA, almost all
ETFs will suffer from one or more of these problems. To read a more detailed discussion of these flaws, visit ETF FLaws
Books about ETFs
The ETF Book: All You Need to Know About Exchange-Traded Funds
Avg. Customer Rating: 
Amazon Price: $19.77 (as of 07/11/2009) 
Exchange-Traded Funds For Dummies (For Dummies (Business & Personal Finance))
Avg. Customer Rating: 
Amazon Price: $16.49 (as of 07/11/2009)
ETF Trading Strategies Revealed (Trade Secrets (Marketplace Books))
Avg. Customer Rating:
Amazon Price: $15.56 (as of 07/11/2009)
Create Your Own ETF Hedge Fund: A Do-It-Yourself ETF Strategy for Private Wealth Management (Wiley Finance)
Avg. Customer Rating:
Amazon Price: $37.80 (as of 07/11/2009)
Sector Trading: A Year in Exchange Traded Funds
Avg. Customer Rating: 
Amazon Price: $14.92 (as of 07/11/2009)
Other Investment books
Identity Theft Protection
Sites to visit
More about ETFs.
Couple other lenses to visit - to take a break from the money game:
Fun
and more fun
Back to money stuff:
Wealthencyclopedia.com
Sources for investment ideas
SmartMoney (1-year)
Amazon Price: $11.00 (as of 07/11/2009)
Kiplinger's Personal Finance magazine
Amazon Price: $12.00 (as of 07/11/2009)
Fortune (1-year)
Amazon Price: $29.98 (as of 07/11/2009)
Inc. (1-year)
Amazon Price: $9.97 (as of 07/11/2009)
Forbes
Amazon Price: $29.99 (as of 07/11/2009)
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by retired
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I spent way too much time working nights and weekends for someone else. So now I try to spend most of my day doing what I like.
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