ARGT Vs EEM: Why Argentina's Focused ETF Is Gaining The Edge

On April 24, 2025, iShares MSCI Argentina and Global Exposure ETF ARGT dashed ahead of leading indices, making even the S&P 500 and the popular iShares MSCI Emerging Index Fund EEM nervously trying to catch up.

Also Read: Argentina’s Congress Approves Investigation Of Scam-Ridden LIBRA Token Promoted By President Javier Milei

As reported by Bloomberg analyst Eric Balchunas, ARGT closed at $42.35, a steep 3.5% daily advance from its earlier close of $40.90. In comparison, the SPDR S&P 500 ETF SPY rose just 0.5% to $498.12, and the Emerging Markets ETF, a broader indicator of emerging countries, managed a 1.2% gain, closing at $43.70.

So, what’s driving this Latin rally? Argentina’s recent move to relax long-standing currency controls has ignited investor enthusiasm. The government’s action was an appreciated tango step toward liberalization, drawing capital inflows and prompting a surge in equity demand, Blockchain News said.

Also Read: Is US Taking Cues From Argentina’s Bold Reforms That Sparked A Market Rally?

ARGT Vs EEM: Apples And Empanadas

While EEM provides diversified exposure across nations such as China, India, Brazil and South Korea, ARGT is far more focused, following the MSCI All Argentina 25/50 Index, which concentrates on the top 20 Argentine firms. That makes ARGT riskier but also more responsive to domestic economic reform, a risk and an opportunity. ARGT places a heavy weight on local players like MercadoLibre MELI, YPF YPF, and Grupo Financiero Galicia GGAL, giving it a high beta.

EEM, on the other hand, leans toward Chinese tech giants like Tencent TCEHY and Alibaba BABA, as well as those from South Korea and India. This insulates the fund from country-specific shocks. But as a tradeoff, the upside is less explosive when a single market surges.

Additionally, ARGT levies a bit higher fee of 59 basis points compared to EEM’s 68 bps but provides a more focused bet on a single recovering market.

For those with a taste for measured risk and a preference for macro-fueled momentum, ARGT may be the spicier dish to try. As EEM continues to offer a well-balanced, globally diversified option, ARGT’s high-conviction exposure to Argentina’s liberalizing economy offers a high-reward option, along with a side of risk. As Buenos Aires opens the throttle and investor enthusiasm warms up, ARGT may remain a popular choice.

Photo: Shutterstock