ECH Index Fund

Chile Investment, how to invest in Chile, what to watch out for when investing, economic issues, currency exchange in Chile, and more.
Post Reply
vamoschile
Rank: Chile Forum Citizen
Posts: 123
Joined: Tue Mar 12, 2019 1:43 am

ECH Index Fund

Post by vamoschile » Wed Apr 28, 2021 12:18 pm

All,

I have been looking at the ECH index fund and was curious what others think of this index fund. Do you think it's way too risky to hold during the new constitution? How pro-business do we expect the new constitution to be? Historically this thing is pretty low and with copper and lithium prices improving I am thinking this might be a good investment. My only concern is the liquidation of 30% of all AFP's but then again all the liquidation went to most of the companies held by the ETF. Anyways curious what others think.


Thanks

User avatar
admin
Site Admin
Posts: 24183
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: ECH Index Fund

Post by admin » Wed Apr 28, 2021 1:06 pm

ECH is a terrible tool for exposure to Chile.

dig in to its holdings. too concentrated in certain things, and misses other things, high fees.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
admin
Site Admin
Posts: 24183
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: ECH Index Fund

Post by admin » Wed Apr 28, 2021 1:29 pm

personally I rarely buy ETFs anymore. too blunt a tool for my taste. especially if I plan on holding a segment for years. why pay the fees?

like they 10% copec, which I own and like. Fallabella is another big chunk, I own and like.

but it also has things like cencosud, which I would never own.

my theory, in Chile, if the company looks like it is run like crap as a customer, it probably really is run like crap on the management side.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

vamoschile
Rank: Chile Forum Citizen
Posts: 123
Joined: Tue Mar 12, 2019 1:43 am

Re: ECH Index Fund

Post by vamoschile » Wed Apr 28, 2021 1:36 pm

admin wrote:
Wed Apr 28, 2021 1:29 pm
personally I rarely buy ETFs anymore. too blunt a tool for my taste. especially if I plan on holding a segment for years. why pay the fees?

like they 10% copec, which I own and like. Fallabella is another big chunk, I own and like.

but it also has things like cencosud, which I would never own.

my theory, in Chile, if the company looks like it is run like crap as a customer, it probably really is run like crap on the management side.
Admin how concerned are you of the sell-off of the AFP funds with the amount of time it will take to recapture the capital lost in stocks you mentioned? I assume most AFP's own COPEC, Fallabella, etc.

User avatar
admin
Site Admin
Posts: 24183
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: ECH Index Fund

Post by admin » Wed Apr 28, 2021 2:01 pm

vamoschile wrote:
Wed Apr 28, 2021 1:36 pm
admin wrote:
Wed Apr 28, 2021 1:29 pm
personally I rarely buy ETFs anymore. too blunt a tool for my taste. especially if I plan on holding a segment for years. why pay the fees?

like they 10% copec, which I own and like. Fallabella is another big chunk, I own and like.

but it also has things like cencosud, which I would never own.

my theory, in Chile, if the company looks like it is run like crap as a customer, it probably really is run like crap on the management side.
Admin how concerned are you of the sell-off of the AFP funds with the amount of time it will take to recapture the capital lost in stocks you mentioned? I assume most AFP's own COPEC, Fallabella, etc.
well, that AFP money is going somewhere.

It is probably just out the fallabella stock, and back in at the counter and credit card / banking division.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
admin
Site Admin
Posts: 24183
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: ECH Index Fund

Post by admin » Wed Apr 28, 2021 2:05 pm

I like to also focus on chilean companies, that are big multi-nationals and not just dependent on Chile.

copec for instance, is one of largest chip board and cellulose makers in the world. they own copper mine, a fish meal, etc. they own the rights to mobile 1 oil brand in south america.

fallabella is all over latin America. sodimac home center, their banking and credit card business brings a lot of liquidity, lots of real estate holdings.

BCI owns banks in the united states.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

Britkid
Rank: Chile Forum Citizen
Posts: 2330
Joined: Wed Dec 05, 2012 6:59 pm
Location: Talagante area, Chile
Contact:

Re: ECH Index Fund

Post by Britkid » Wed Apr 28, 2021 2:20 pm

The new constitution and the new people in power will likely shift to a less generous stance for businesses over the next year or two.

However, if the analysts and investors are smart, that could already be priced into the market.

However, I'm not convinced how much power the constitution really has in practice.

The risk now is that if you go in this year with investments then either the market or just the exchange rate takes a bit of a knock in response to elections at the end of the year IF a lot of populists/lefty folk are elected. I don't buy any Chilean stocks but if I was going to do it I would probably wait until 2022.

By then, we should have a better idea of the country's direction after the dust settles on the November/December 2021 elections.

I personally suspect that these elections are going to be something of an earthquake to the political and elite establishment. Then again, not too confident about that. Who knows. This investing is a bit of a lottery really. All you can do is try and make 60/40 guesses rather than total coin tosses.

User avatar
admin
Site Admin
Posts: 24183
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: ECH Index Fund

Post by admin » Wed Apr 28, 2021 6:52 pm

I think think it is going to be a massive waist of time that fundamentally ends up doing most what the current constitution does now with a new coat of paint and some unicorn and rainbow decorations along the edges.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
admin
Site Admin
Posts: 24183
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: ECH Index Fund

Post by admin » Wed Apr 28, 2021 6:58 pm

as for when to invest, I would say buy a chunk now, hang on to some dry powder, in the event there is a better buying opertunity later.

really, the time to buy in was last year.

also, although a bit late, buying in to pretty much any good copper miner is essentially a leverage play on Chile. especially if the majority of their mines are outside of Chile.

Just the process of Chile messing around with the constitution, and the uncertainty that generates, along with the long-term demand for copper, will set a fire to the copper price.

which, ironically, should generate sufficient extra income for Chile to completely screw-up writing a new constitution, and still be able to pay for it. It is a strange sort of feedback loop chile is generating.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

Post Reply