On April 24, 2025, iShares MSCI Argentina and Global Exposure ETF (NYSE:ARGT) dashed ahead of leading indices, making even the S&P 500 and the popular iShares MSCI Emerging Index Fund (NYSE:EEM) nervously trying to catch up.
As reported by Bloomberg analyst Eric Balchunas, ARGT closed at $42.35, a steep 3.5% daily advance from its earlier close of $40.90. In comparison, the SPDR S&P 500 ETF (NYSE:SPY) rose just 0.5% to $498.12, and the Emerging Markets ETF, a broader indicator of emerging countries, managed a 1.2% gain, closing at $43.70.
So, what’s driving this Latin rally? Argentina’s recent move to relax long-standing currency controls has ignited investor enthusiasm. The government’s action was an appreciated tango step toward liberalization, drawing capital inflows and prompting a surge in equity demand, Blockchain News said.
Also Read: Is US Taking Cues From Argentina’s Bold Reforms That Sparked A Market Rally?
ARGT Vs EEM: Apples And Empanadas
While EEM provides diversified exposure across nations such as China, India, Brazil and South Korea, ARGT is far more focused, following the MSCI All Argentina 25/50 Index, which concentrates on the top 20 Argentine firms. That makes ARGT riskier but also more responsive to domestic economic reform, a risk and an opportunity. ARGT places a heavy weight on local players like MercadoLibre (NASDAQ:MELI), YPF (NYSE:YPF), and Grupo Financiero Galicia (NASDAQ:GGAL), giving it a high beta.
EEM, on the other hand, leans toward Chinese tech giants like Tencent (OTCPK: TCEHY) and Alibaba (NYSE:BABA), as well as those from South Korea and India. This insulates the fund from country-specific shocks. But as a tradeoff, the upside is less explosive when a single market surges.
Additionally, ARGT levies a bit higher fee of 59 basis points compared to EEM’s 68 bps but provides a more focused bet on a single recovering market.
For those with a taste for measured risk and a preference for macro-fueled momentum, ARGT may be the spicier dish to try. As EEM continues to offer a well-balanced, globally diversified option, ARGT’s high-conviction exposure to Argentina’s liberalizing economy offers a high-reward option, along with a side of risk. As Buenos Aires opens the throttle and investor enthusiasm warms up, ARGT may remain a popular choice.
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