South America ETF Industry Market Size (2024 - 2029)

The South American ETF market is poised for growth, with an increasing market size driven by recovering economies and improved investor confidence post-COVID-19. This region, particularly attractive due to its emerging markets, offers diverse investment opportunities through various exchange-traded funds. The market's expansion is supported by favorable policies in countries like Argentina, which encourage foreign investment. Despite some volatility, the market's recovery trajectory presents promising prospects for portfolio diversification in South America.

Market Size of South America ETF Industry

South America ETF Industry Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 9.24 Billion
Market Size (2029) USD 11.79 Billion
CAGR (2024 - 2029) > 5.00 %
Market Concentration Medium

Major Players

South America ETF Industry Major Players

*Disclaimer: Major Players sorted in no particular order

South America Exchange Traded Funds (ETF) Market Analysis

The South America ETF Industry is expected to grow from USD 9.24 billion in 2024 to USD 11.79 billion by 2029, at a CAGR of greater than 5% during the forecast period (2024-2029).

South America-based ETFs are an attractive option. Mainly, there are 5 sovereign states that have gained traction in this market. The Central Bank of Brazil stated its intent to increase support for the real currency in the wake of the pandemic, and many asset management firms argued that this emerging market was a prime cheap opportunity. Bank stocks and sector-related exchange-traded funds have been hard hit and have fallen behind the broader market, but this segment may be a cheap opportunity.

ETFs trade like stocks, fluctuate in market value, and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns. Currently, the second-largest economy in South America, Argentina, has made some policies recently that made them market-friendly to foreign investors. Some notable ETFs on offer from this region are iShares MSCI Brazil Capped ETF, WisdomTree Brazilian Real Strategy ETF, iShares MSCI Brazil Small-cap ETF, VanEck Vector Brazil Small-cap ETF, and others.

The post-COVID-19 scenario of the South American ETF industry is showing signs of recovery. As economies stabilize and investor confidence improves, there is a growing interest in South America-focused exchange-traded funds (ETFs). These ETFs provide investors with exposure to the region's markets, including Brazil, Argentina, and Chile. While there may still be some volatility, the industry is gradually bouncing back, presenting opportunities for investors looking to diversify their portfolios in South America.

South America Exchange Traded Funds (ETF) Industry Segmentation

An exchange-traded fund is a type of investment fund and exchange-traded product, i.e., they are traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, futures contracts, and/or commodities such as gold bars. An understanding of the South American ETF industry, regulatory environment, ETF providers, and their business models, along with detailed market segmentation, product types, revenues and dividends, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments. The South American ETF Industry is segmented based on ETF types, which include equity ETF, fixed income ETF, real estate ETF, commodity ETF, currency ETF, and others). 

The report offers market size and forecasts for the South American ETF industry in terms of revenue (USD) for all the above segments.

Types of ETFs
Fixed Income ETFs
Equity ETFs
Commodity ETFs
Alternatives ETFs
Money Market ETFs
Mixed Assets ETFs
Other Type of ETFs
By Geography
Argentina ETFs
Brazil ETFs
Chile ETFs
Colombia ETFs
Peru ETFs
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South America ETF Industry Size Summary

The South American ETF industry is poised for significant growth, driven by increasing investor interest and favorable market conditions. The region's ETFs, particularly those based in Brazil, Argentina, and Chile, offer a compelling opportunity for diversification and exposure to emerging markets. The post-pandemic recovery has bolstered investor confidence, leading to a resurgence in ETF activity. The introduction of new ETFs has facilitated easier portfolio diversification, attracting investors seeking to mitigate risk and broaden their investment scope. Brazil's advanced banking system and capital market infrastructure have further enhanced the appeal of ETFs, including those focused on digital assets, which are gaining traction in the regulated environment of the B3 stock exchange.

The South American ETF market is characterized by a fragmented landscape with several key players, including Deutsche Asset & Wealth Management, Direxion, and iShares - BlackRock, among others. These companies offer a range of products that cater to diverse investment strategies and regulatory frameworks. Recent developments, such as the launch of UCITS ETFs by Xtrackers in Brazil and the partnership between Galaxy and Itau to create digital asset ETFs, underscore the dynamic nature of the market. As the industry continues to evolve, it presents a promising avenue for investors looking to capitalize on the region's growth potential and technological advancements in asset management.

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South America ETF Industry Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased Transparency and the Ability to Trade Throughout the Day

      2. 1.2.2 Increased Demand for Low-Cost and Diversified Investment Options

    3. 1.3 Market Restraints

      1. 1.3.1 Liquidity Concerns for Certain Niche or Less-Traded ETFs

    4. 1.4 Market Opportunities

      1. 1.4.1 Introduction of New Types of ETFs, Such as Thematic or ESG-Focused Funds

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Suppliers

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Insights on Technology Adoption of the Business Landscape

    8. 1.8 Insights on Industry Policies And Government Regulations

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Types of ETFs

      1. 2.1.1 Fixed Income ETFs

      2. 2.1.2 Equity ETFs

      3. 2.1.3 Commodity ETFs

      4. 2.1.4 Alternatives ETFs

      5. 2.1.5 Money Market ETFs

      6. 2.1.6 Mixed Assets ETFs

      7. 2.1.7 Other Type of ETFs

    2. 2.2 By Geography

      1. 2.2.1 Argentina ETFs

      2. 2.2.2 Brazil ETFs

      3. 2.2.3 Chile ETFs

      4. 2.2.4 Colombia ETFs

      5. 2.2.5 Peru ETFs

South America ETF Industry Market Size FAQs

The South America ETF Industry size is expected to reach USD 9.24 billion in 2024 and grow at a CAGR of greater than 5% to reach USD 11.79 billion by 2029.

In 2024, the South America ETF Industry size is expected to reach USD 9.24 billion.

South America ETF Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)