Latin America Stocks Crush the S&P 500 by 4 Points as 2024 Rally Builds

The iShares Latin America 40 ETF is up 15% this year, outpacing the S&P 500's 11% gain, and one expert says the region's strongest tailwinds in decades are still powering ahead.

· 1 min read ·
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Latin American stocks are beating the U.S. market in 2024, and the gap is widening.

The iShares Latin America 40 ETF (ILF), which tracks major stocks across the region, has climbed 15% so far this year, while the S&P 500 has risen 11%, according to market data [1]. That four-point lead means investors putting money into Latin America are seeing bigger returns than those parked in the world's most-watched index.

According to Caruso-Cabrera, the forces pushing Latin American markets up — what analysts call "tailwinds" — are the strongest they have been in decades [1]. Those conditions have helped the region's stocks outperform even as global investors pour money into U.S. technology giants.

The performance stands out because it comes against a backdrop of caution elsewhere. New Zealand's sovereign wealth fund, the New Zealand Superannuation Fund, returned 14% this year despite holding a smaller share of American technology companies than most global investors [2]. Its managers now expect a pullback in global equities, warning that prices have risen too far and too fast [2].

That warning has not stopped the rally in Latin America, where the ILF continues to draw attention for outpacing the S&P 500 [1]. The fund's gains suggest that strong returns do not require following the crowd into U.S. tech stocks [2].

For now, the numbers tell a simple story: Latin America is up 15%, the S&P 500 is up 11%, and the region's strongest tailwinds in decades show no sign of fading [1].

Sources

Latin America is beating the S&P 500 — and one expert says the best is yet to come. #246433New Zealand Fund Defies Tech Slump, Warns Global Stocks at Risk #242446

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