S&P Latin America 40 Index

S&P Latin America 40 Index

Table of Contents

BRIEF ABOUT INDICES (History)

The S and P Latin America 40 index tracks stock performance in five Latin American emerging markets: Brazil, Chile, Colombia, Mexico, and Peru. Index components are big corporations from each of the 11 industries classified by the Global Industry Classification Standard (GICS®).

The size and liquidity of constituents are evaluated, and each component region has suitable sector and nation representation. Every market’s dimensions correspond to its proportional size within the index universe supported by float adjusted market capitalization (FMC). The index is one of seven major indices that comprise the S&P Global 1200.

TOP LISTED COMPANIES

  • ALFA
  • América Móvil
  • B3
  • Banco Bradesco
  • Banco de Chile
  • Banco Santander Chile
  • Bancolombia
  • BRF S.A.

FORMULA

The index is calculated by means of the divisor methodology.

TIMING

  • The most basic – and effective – strategy for minimizing risk is diversification.
  • Diversification is based heavily on the concepts of correlation and risk.
  • A well-diversified portfolio will consist of different types of securities from diverse industries that have varying degrees of risk and correlation with each other’s returns.
  • Investment professionals agree that diversification can’t guarantee against a loss, it is the most important component to helping an investor reach long-range financial goals, while minimizing risk.