Brazil, Latin America Regional ETFs Attracting Buyers

With a significant number of ETFs beginning trading at midweek in deeply oversold territory, it is little surprise to see traders and active investors in a buying mood on Wednesday – at least in the near-term. For those who are still looking for markets trading at levels where traders have been more inclined to buy than sell, here are three country and country regional funds that are still likely to be trading in or near oversold territory when trading begins Thursday morning.

The iShares MSCI Chile Index Fund ETF (NYSE: ECH) has only been trading in bull market territory since early February, making the current sell-off in ECH the fund’s first since climbing back above the 200-day moving average. ECH closed lower for three days in a row, four out of the last five, heading into Wednesday’s session, including a pair of finishes in technically oversold territory.

Wednesday’s trading put a bid under ETF, sending ECH higher by more than half a percent intraday before the fund faded toward breakeven heading into the close. As such, the bounce in ECH was not enough to bring the fund out of oversold territory and, as such, ECH still has “consider buying” ratings of 9 out of 10.

The ratings in another Latin America area ETF, the iShares MSCI Brazil Index Fund ETF (NYSE: EWZ), have actually improved temporarily over the course of trading on Wednesday. EWZ began Wednesday’s session with “consider buying” ratings of 9 out of 10, then had its rating upgraded to a top, 10 out of 10, before settling back to a still “consider buying” 8 out of 10.

EWZ now has closed technically oversold for three days in a row. The ETF has a positive edge in the short-term of just over a third of a percent.

For traders and active investors who would prefer a somewhat broader exposure to short-term weakness in emerging markets, the positive edge of more than a quarter of a percent in the iShares S&P Latin America 40 ETF (NYSE: ILF) may be worth a look.

ILF had closed lower for three days in a row heading into trading on Wednesday, earning “consider buying” ratings of 9 out of 10. Edging higher by a little over a quarter of a percent on Wednesday, ILF still looks likely to open on Thursday with top ratings of 8 or higher after failing to climb out of technically oversold territory.

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