ARGT: Lifting Of Currency Controls Paves The Way For The Argentine Economic Miracle
Argentina secures a $20B IMF deal, surpassing expectations, with $12B available immediately, boosting confidence in the government's pro-market reforms and economic stability. The lifting of currency controls and fiscal reforms under President Milei are expected to attract significant foreign investments, particularly in energy and mining sectors. Despite recent market volatility and a 4% YTD drop in ARGT ETF, Argentina's strong economic fundamentals and new growth catalysts make it a promising investment.
Emerging Markets Watchlist: March 10, 2025
Our emerging markets watchlist tracks nine indexes from emerging economies around the world. Emerging markets are countries with economies in the process of rapid growth and industrialization.
This Is Why I Double Down On ARGT Even After 'LibraGate'
I recommend buying the Global X MSCI Argentina ETF despite the recent market panic caused by the $LIBRA cryptocurrency incident involving President Javier Milei. The ARGT ETF, which replicates the MSCI Argentina Index, offers a practical way to gain exposure to top Argentine companies and had a 63.5% return in 2024. President Milei's economic measures are reducing inflation and attracting investors, making the current market drop a buying opportunity rather than a cause for concern.
Why It's Not Too Late To Be Bullish On ARGT In 2025
The Global X MSCI Argentina ETF surged 61% in 2024, driven by President Javier Milei's ultra-liberal economic reforms, including fiscal adjustment and stable inflation. Argentina's economic outlook for 2025 remains bullish due to falling inflation, fiscal discipline, reduced country risk, and projected GDP growth of 5.5%. ARGT offers diversified exposure to Argentine equities, with significant holdings in MercadoLibre, YPF S.A., and Grupo Galicia, though high exposure to MercadoLibre poses some risk.
Why Argentina? And Why ARGT?
The Global X MSCI Argentina ETF provides targeted exposure to the rapidly evolving Argentine economy. Under the leadership of President Javier Milei, who was elected in 2023 following a campaign calling for an abrupt shift in economic policy, Argentina is embracing economic orthodoxy and pro-business policies. While some of these dramatic shifts, which followed decades of Peronist policies, weighed on the day-to-day life of the average Argentine, we believe that the country is in a much better position to support long-term growth in the private sector, bring down inflation, increase gross domestic product, leverage its abundant natural resources, and attract foreign investment.
Top & Flop ETFs of 2024
We have highlighted three ETFs each from the best and worst-performing zones in 2024.
ARGT: Riding The Libertarian Wave Of Economic Revival
The Global X MSCI Argentina ETF offers a liquid investment in Argentina's top companies, providing exposure to the country's economic potential under libertarian policies. President Javier Milei's vision includes reducing welfare, lowering taxes, promoting entrepreneurship, lowering inflation, and stabilizing the economy to foster growth and prosperity. Argentina's rich natural resources, historical success, and human capital position it for a resurgence with the right policies.
Argentina ETF On Top In 2024
Below is a look at year-to-date total returns for 46 country ETFs available to investors on US exchanges. While the US is sitting on a huge gain of 28.6% this year, the average year-to-date change for these country ETFs is just 8.7%. Nine country ETFs are in the red for the year. France is the most notable and the only G7 country that's down in 2024.
ARGT: It's Just The Beginning Of Improvement
I recommend buying the Global X MSCI Argentina ETF (NYSEARCA: ARGT) due to Argentina's strong economic reforms and projected GDP growth of 8.5% in 3Q24. Despite a 60% price increase this year, ARGT's P/E ratio remains lower than the global average, indicating a large margin of safety. Valuation analysis shows ARGT trading at 13.5x earnings, below its 5-year average, suggesting an upside of 14.8% to 18%.
ARGT: Strong Country ETF YTD Sees Record Inflows
Argentina equities' strength, driven by a pro-capitalist government, have made ARGT the best-performing country ETF in 2024, attracting record inflows. ARGT's growth story is compelling despite its 0.59% expense ratio and high volatility, with a forward P/E of 16 (per the issuer) and a 19% EPS growth rate. The ETF's portfolio is highly cyclical, with significant allocations to Consumer Discretionary and Financials, and a notable overweight in Energy.
ARGT: A Top Performing Global Fund On Track For Sustained Strong Returns
The Global X MSCI Argentina ETF has surged nearly 35% in 2024, driven by President Milei's austerity measures and economic reforms. Key holdings like MercadoLibre, YPF Sociedad Anónima, and Argentine banks have significantly contributed to ARGT's performance, reflecting Argentina's economic recovery. Despite the ETF's price appreciation, valuations remain attractive compared to other emerging market peers, and ARGT still offers upside potential.
Highest And Lowest Country ETF Dividend Yields
US equities have outperformed the rest of the world for a long time now. While the US is up 58% on a total return basis during the current bull market, the rest of the world is up 13.5 percentage points less at +44.5%. Looking at the international dividend ETF over a longer time frame, over the last five years, it's up 20.6% in price and more than double that on a total return basis.
