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iShares Latin America 40 ETF rated Buy on low valuation and strong sector mix despite cooling momentum.

Technical Signals
01 Jul 2026
Seeking Alpha
View Source
Bullish
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The iShares Latin America 40 ETF (ILF) is recommended as a Buy due to its attractive valuation at a low 9.8x price-to-earnings ratio and a 2.90% dividend yield. The ETF is heavily weighted toward Financials and Energy sectors, with no exposure to Technology, which supports its current technical position near the 200-day moving average. While momentum has slowed, the dominance of cyclical sectors and favorable July seasonality suggest a positive near-term risk/reward profile. Key risks include a potential drop below $32 support, limited growth sector exposure, and resistance near $37 that could cap gains.

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