What Is the ILF ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An iShares regional ETF that tracks the S&P Latin America 40 Index, investing in 40 large-cap Latin American stocks centered on Brazil and Mexico
SubscribeWhat Is This ETF?
It tracks the S&P Latin America 40 Index and holds 40 large-cap stocks from Brazil, Mexico, Chile, Colombia, and Peru, weighted by market capitalization. Brazil and Mexico account for most of the weighting.
It suits investors who want a separate allocation to Latin America as part of emerging market diversification, or who want exposure to a Latin American growth theme linked to the commodity cycle.
It is a passively managed (index-tracking) ETF launched in 2001 by iShares (BlackRock).
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | S&P Latin America 40 Index |
| Management Style | Passive (index tracking) |
| Main Countries | Centered on Brazil and Mexico (5 countries) |
| Dividend Frequency | Semiannual |
| Total Expense Ratio | 0.47% |
The fund holds 40 large-cap stocks from five Latin American countries, weighted by market capitalization. Brazilian energy and financial companies and Mexican telecom and consumer goods companies lead the portfolio, which is heavily affected by commodity prices and local currency exchange rates.
- Diversifies across five Latin American countries in a single product, which is more convenient than investing in each country separately
- Concentration in commodity-exporting countries creates exposure to the global commodity cycle
Size and Costs
Assets under management (AUM) stand at $3.4B, and the total expense ratio is 0.47% per year.
Because the portfolio is concentrated in 40 stocks, individual holdings have a large impact, and local currency fluctuations significantly affect returns in dollar terms.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeStrength in global commodity prices and the movement of major Latin American currencies fed directly into returns, and fluctuations in the Brazilian real and Mexican peso exchange rates were key variables in dollar-converted returns.
Expectations of a easing in US dollar strength and of benefits for Latin American commodity exporters kept interest alive in Latin America-focused ETFs amid inflows into emerging markets, and hopes for improved earnings at Brazilian and Mexican companies also supported investor sentiment.
Strengths and Weaknesses
Its strength is the convenience of regional concentration in a single Latin American product, while its main drawbacks are currency and political risk and dependence on commodity prices.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
EZU, VPL, AIA, and IPAC in the table are European and Pacific regional ETFs, so they are not direct comparisons for ILF. For Brazil-only exposure, EWZ is the direct alternative, and for Mexico-only exposure, EWW. To diversify across emerging markets as a whole, including Latin America, EEM or VWO offer broader choices.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 EZU | iShares MSCI EMU ETF | $66.23 | +0.8% | $9.2B | 0.50% | 2.78% | +5.4% |
 VPL | Vanguard FTSE Pacific ETF | $111.26 | -0.6% | $8.7B | 0.07% | 2.17% | +21.4% |
 AIA | iShares Asia 50 ETF | $131.56 | -1.8% | $4.8B | 0.50% | 0.95% | +31.8% |
 BDYN | iShares Dynamic Equity Active ETF | $27.73 | -0.0% | $3.2B | 0.39% | 0.32% | +8.4% |
 CGNG | Capital Group New Geography Equity ETF | $34.15 | -0.8% | $3.1B | 0.64% | 0.64% | +6.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| VALE | Vale SA ADR | 0.17% | $11.18 | -2.5% | $45.5B | 23.6 | 8.83% |
| NU | Nu Holdings Ltd | 0.17% | $12.05 | +0.7% | $58.2B | 16.4 | - |
| ITUB | Itau Unibanco Holding SA ADR | 0.14% | $7.37 | -0.4% | $39.8B | 9.6 | 7.95% |
| PBR-A | Petroleo Brasileiro SA Petrobras ADR | 0.22% | $19.42 | -0.9% | $52.9B | 4.9 | 7.64% |
Investor Checkpoints
ILF is an iShares regional ETF that lets you invest in 40 large-cap stocks from the five major Latin American countries at once. The characteristics of commodity-exporting countries and local currency exposure are the key drivers of returns, and the portfolio is linked to the global commodity cycle.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 🌎 Check Country Weights | Understand the concentration in Brazil and Mexico and the weights of the other three countries | Concentrated in two countries |
| 💱 Recognize Currency Risk | Understand how weakness in local currencies (real, peso) affects dollar returns | No currency hedge applied |
| ⚡ Commodity Linkage | Understand the correlation between the global commodity price cycle and the portfolio | High commodity linkage |
| 📋 Political Risk | Monitor political instability and regulatory changes in Latin American countries | Regular review recommended |
Weakness in local currencies can significantly reduce returns in dollar terms, and the political instability and resource nationalization risks unique to Latin America are always present. In a downward commodity price cycle, the entire portfolio can underperform.
ILF is a convenient single product for investors who want a Latin America allocation. It is best used as a satellite allocation for investors who accept currency and political risk while seeking to benefit from the upside phase of the commodity cycle.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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