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Market Update

Can Latin American Stock Funds Continue Their Run?

2017 will bring its fair share of challenges to this relatively small investment universe.

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Latin American funds rallied this year. As of this writing, they were by far the best-performing category among International Equity funds, up nearly 25% for the year. But the region will likely face hurdles in 2017 that may be hard to overcome.

"The main reason that Latin American markets have performed well this year is because of the boost from Brazil. Brazil dominates that category," said Gregg Wolper, senior fund analyst at Morningstar. Brazilian stocks make up more than 50% of the MSCI EM Latin American Index.

Manuela Badawy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.