CHILE ETF AND STOCK ADR LIST ANALYZED

Chile stock market overview

Chile is the most developed country in Latin America and the GDP growth has been nice and stable.

chile GDP

Source: Trading Economics

The debt to GDP is at extremely low levels.

chile debt to gdp

Source: Trading Economics

The population is expected to grow slowly but surely over the next 30 years. The currency has been extremely stable towards the dollar and traded in line with the dollar’s own strength.

usd clp currency

Source: FRED

MSCI Chile ETF

The ETF for Chile is not cheap at all given also the good economics.

chile etf ECH

Source: iShares Chile ETF

All of this makes me look at Chilean stocks from time to time. Chilean stocks that are traded on the NYSE. Here is the list:

Chilean stocks traded on the NYSE – Chile ADRs

Banco de Chile                                            BCH   NYSE Banks

Banco Santander Chile                              BSAC NYSE Banks

Compania Cervecerias Unidas                 CCU   NYSE Beverages

Embotelladora Andina – A Shares AKO    NYSE Beverages

Embotelladora Andina – B Shares AKO    NYSE Beverages

Endesa-Empresa Nacional de Electricidad         EOCC NYSE Electricity

Enersis                                                          ENIA   NYSE Electricity

Enersis Chile                                    ENIC  NYSE Electricity

Itau CorpBanca                                            ITCB   NYSE Banks

Latam Airlines Group                                  LFL     NYSE Travel & Leisure

Soc. Quimica y Minera de Chile – B Shares        SQM   NYSE Chemicals

Vina Concha y Toro                                     VCO   NYSE Beverages

Source: Top Foreign Stocks

I believe VCO, which is a nice company was recently delisted which shows another risk of investing in such stocks but if you invest in the business that is not such a worry, you get the value of the stock at the average 3 months price before the delisting announcement.

So, this is just an overview that I do on many markets, it has been compiled by David Mostl, my intern, and some things have been added by me.

Something very important to note is the tax on Chilean dividend distributions that varies on a personal level but can go up to 35% which is something to keep in mind.  Here is the video overview:

A detailed analysis of EOCC:

Conclusion

  • Banking sector: difficult to see through/understanding the companies. Dependent on an economy growth to see an increase in loans.
  • Beverage sector: solid business, relative stable, but do we get value for the price?
  • Utilities: interesting valuation, new projects are where new value can come from, potential as more electricity will be consumed
  • GPRK: interesting company, to get exposure to the oil price; strong cashflow
  • LTM: many risks, cyclical, dependent on a low oil price
  • SQM: lithium gets/is very important for todays life, also fertilizers. Enough value for the price?

I have also looked at some stock traded in Chile but high on the ETF ownership list. Unfortunately, all have a high PE ratio and not what you’d expect form an emerging market.

list chile stocks

Chile is interesting but we can find better opportunities, better risk reward opportunities around the world. Chile is stable and good, that comes always with a price.

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