ECH

The iShares MSCI Chile ETF (ECH) is an exchange-traded fund designed to track the performance of Chilean companies listed in the equity market. The ETF is managed by BlackRock through its iShares division and trades under the ticker ECH on the NYSE Arca.

Classified as an equity ETF with geographic exposure to Chile, the fund seeks to reflect, before fees and expenses, the performance of the MSCI Chile IMI 25/50 Index.

The ETF follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. The benchmark includes Chilean companies across multiple sectors of the economy, including large-cap, mid-cap, and small-cap equities, subject to liquidity and market-capitalization criteria.

Diversification and sector exposure

ECH provides exposure primarily associated with:

• Financials.
• Basic materials.
• Mining.
• Electric utilities.
• Utilities.
• Consumer staples.
• Metal commodities.
• Chilean large-cap and mid-cap companies.

The ETF’s performance is particularly sensitive to commodity-market dynamics, especially copper prices, since copper is one of Chile’s primary export products. The fund may also reflect changes in Latin American economic conditions, international capital flows, and the Chilean political and regulatory environment.

In addition, currency fluctuations, inflation trends, and monetary-policy decisions by both the Central Bank of Chile and the Federal Reserve may directly influence the ETF’s behavior.

Structure and costs

ECH shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. ECH may distribute income derived from dividends paid by Chilean companies held in the portfolio.

Because the ETF maintains concentrated exposure to a single emerging-market country, its performance may show greater sensitivity to political risks, currency fluctuations, and changes in the regional economic environment.

History and evolution of the ETF

The iShares MSCI Chile ETF was launched in 2007 during a period marked by the expansion of emerging-market ETFs and growing demand for Latin American exposure within the U.S. market.

Since inception, the fund has reflected movements associated with the Chilean economy, including fluctuations in metal commodity prices, changes in the local political environment, and shifts in global macroeconomic conditions.

In recent years, ECH has reflected periods of volatility across emerging markets, changes in global monetary policy, fluctuations in copper prices, and transformations within Chile’s economic and regulatory environment.

Additional Information

iShares MSCI Chile ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $980.50 Millions.

Over the past 12 months, iShares MSCI Chile ETF recorded a return of 39.76%, with its price trading between $29.48 and $47.37 during the same period.

The ETF is traded under the ticker ECH.