The Global X MSCI Argentina ETF (ARGT) has taken the lead as the top-performing ETF worldwide in 2024. This ETF tracks Argentine company receipts traded in New York, delivering returns of nearly 27% between January and September 11, 2024.
In contrast, the iShares MSCI Brazil ETF (EWZ) linked to 58 B3 companies recorded losses of 16.40% during the same period. The fund following Brazilian company receipts ranked second-to-last in performance.
Thiago Kurth Guedes, business development director at Bridgewise, credits ARGT’s success to President Javier Milei’s controversial austerity policies, leading Argentina to achieve its first financial surplus since 2008. However, Guedes warns that ARGT’s current performance level may not be sustainable.
Argentina ETF Outperforms Global Market, While Brazil Lags Behind
Despite concerns, the overall outlook for Brazil’s Ibovespa index remains positive, with projections of reaching 145,000 points by the end of 2024. Emerging markets offer investment opportunities but also carry risks such as currency volatility and political uncertainty.