Investing in the Americas: An introduction
In the South are countries such as Brazil, Argentina, Mexico and Chile. Previously dominated by commodities, these economies are broadening and diversifying as they mature, with new opportunities in areas such as ecommerce and finance.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Why invest in the Americas?
Why invest now in South America and North America
North America - The US economy has proved remarkably resilient and, in spite of weaker jobs growth, is still showing strength.7 Stock market growth is broadening out, increasingly moving away from the previously dominant mega-cap technology companies, and into other sectors and smaller companies.8 This is creating broader opportunities across US equities.
South America - South America had a difficult year in 2024, but this weakness has left valuations low.9 The region is seeing stable growth, and may benefit from falling interest rates over the next 12 months.10 It is a source of strong dividends.9 Latin America is commodity-rich and a number of its largest companies may benefit from rising prices.11
Investing in the Americas: key drivers and risks
North America
The strength of AI
AI spending has become an important part of the US market and the US economy. The development of AI remains an important factor in the strength of the US market, with technology companies around one third of the S&P 500 index.12
Geopolitical tensions
Some of the largest companies in the US market draw their revenues from across the globe.13,14 They are sensitive to changes in global demand, but also to trade disruption across the globe, particularly trade wars with rivals such as China.
US economic policy
US economic policy, including fiscal spending and tax cuts, can help or hinder growth in the US stock market. Higher spending may favour certain areas, such as healthcare or construction. Consumer sectors may also benefit from higher economic activity.
US interest rates and inflation
US stock markets favour looser monetary policy and have been particularly sensitive to changes in the Federal Funds rate. Markets dropped significantly in 2022, when interest rates rose rapidly, and have responded positively to subsequent cuts.15
South America
Weaker Dollar
Latin American markets tend to benefit from a weaker Dollar and falling US interest rates. Lower US interest rates allow domestic central banks more freedom to cut interest rates, which can stimulate domestic economic growth.
Commodity demand
Resource-rich economies should benefit from rising commodity prices and stronger global economic growth. Chile, for example, draws around 50% of its exports from copper16 and economic growth can be influenced by global demand. Brazil is also a huge exporter of raw materials across the globe.17
Domestic economic policy
Prudent economic policy and improving growth can drive global interest in Latin American markets. Markets may be volatile around elections and the rhetoric of individual candidates. However, Latin American markets have generally pursued more orthodox economic policy in recent years.18
Global economic growth
Latin American markets tend to perform well when global growth is expanding and risk appetite is higher.19 This may also increase demand for commodities.
Major market indices
North America
S&P 500 – the S&P 500 gives exposure to the 500 largest listed companies in the US market. It is heavily weighted in technology, with around 35% in the sector.13 Its largest weightings are in Nvidia, Microsoft and Apple.
Dow Jones – The Dow Jones Industrial Average tracks 30 US blue-chip companies. It has a lower weighting in technology, with only around 20% weighting in the sector. Its largest weighting is financials, at 27.4%. Its largest weight is in Goldman Sachs.20
Nasdaq Composite – The Nasdaq index tracks the majority of the 3,500 stocks listed on the Nasdaq stock exchange. It has a heavy weighting towards the technology sector,21 with its largest weightings in Nvidia, Apple, Microsoft and Amazon.22
S&P/TSX Composite Index – The main Canadian index tracks the performance of stocks listed on the Toronto Stock Exchange.23 It includes 214 stocks. Its largest weighting is in streaming service Spotify. Financials are also well-represented, with Royal Bank of Canada and Bank of Montreal among the top 10 index weightings.
South America
MSCI EM Latin America – The index measures share price performance for large and mid-sized companies across the five emerging markets of Latin America – Mexico, Brazil, Chile, Peru and Columbia.9 Financials and materials are the largest weightings.
Ibovespa – This is the leading index for the Brazilian market. It includes over 80 stocks traded on the country’s B3 exchange.24 Its largest holdings include oil giants Petrobras and Vale, which make up around 20% of the index capitalisation between them.
S&P/BMV index – This is the main index for the Mexican market.25 Its largest weighting is in consumer staples, with high weightings in financials and materials. The largest companies are materials company Grupo Mexico, telecoms group America Movil and financials group Grupo Financiero Banorte.
Investing in the Americas: Notable sectors and industries
North America
The USA - The US markets have become increasingly dominated by technology companies, and artificial intelligence-related companies in particular.26 These include behemoths such as Microsoft, Nvidia, Apple, Meta and Alphabet. However, the US market is deep and the country also has leading financial, consumer and healthcare companies.
Canada – The Canadian stock market is heavily weighted to financial companies, at around one third of overall market capitalisation.24 The largest weight is to the Royal Bank of Canada. It also has significant weights in natural resources and energy.
South America
Brazil – the Brazilian market is dominated by natural resources giants Vale and Petrobras.25 However, they have been losing share to some of the financials companies, including digital banking giant Nu Holdings.
Mexico – The Mexican market is split across consumer groups, materials and financials.26 Walmart de Mexico and Fomento Economico Mexicano have grown to become a significant share of the country’s stock market. These sit alongside materials companies such as Cemex, and industrials such as Grupo Aeroportuario del Sureste.
Smaller markets - There are idiosyncratic opportunities across Latin America’s smaller markets. Chile, for example, has reserves of copper, which have become increasingly important in the energy transition.27 Ecommerce giant Mercardo Libre is listed in Argentina.28
Historical performance of the stock market: The Americas
North America
S&P 500
Historical performance of the stock market over the past year
North American markets have led global stock markets for over a decade. A handful of mega-cap technology companies have accounted for a significant part of this gain.29 One way to illustrate this is by comparing the performance of the technology-heavy S&P 500, with the Dow Jones, which has a lower weighting in technology. S&P 500 has an annualised return of 12.75%30 versus a return of 10.4% for the Dow Jones.31
South America
INDEX PERFORMANCE, NET RETURNS of the MSCI Emerging Markets Latin America Index (USD)
South American markets are often volatile. Performance is often at the top or bottom of global performance tables. Periods of weak performance have tended to be followed by periods of very strong performance.9 The region tends to do well when global risk appetite is high and there is abundant demand for natural resources.
Annual performance to last quarter end (%) (GBP)
Our Investment Trusts
Regional Hub FAQs: Americas
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North America is home to the largest capital markets in the world, bringing real choice and diversity to investors.32 North American stocks bring exposure to technology innovation, globally recognised consumer brands, and global industrial leaders.
South America brings exposure to emerging market growth, developing consumer markets and natural resources. There are opportunities to invest for growth and for income. Investors can also capitalise on improving economic management across the region.
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North America has large and diverse capital markets, which creates a range of options for both income and growth investors.33 It is home to significant innovation, with US companies leading the way in a range of industries, but particularly on technology. North American markets also hold leading global brands and dominant franchises.
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South America is home to a range of emerging markets that are still growing and developing. This creates a fertile environment for companies to grow their earnings. It also has a growing consumer market, plus a backbone of natural resources. There are opportunities to invest for growth and for income. South America may also provide diversification in a portfolio, with its markets moving independently from global stock markets.
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In the US, markets have become increasingly dominated by technology companies, and artificial intelligence-related companies in particular. These include behemoths such as Microsoft, Nvidia, Apple, Meta and Alphabet.34 However, the US market is deep and the country also has leading financial, consumer and healthcare companies. The Canadian stock market is heavily weighted to financial companies, including the Royal Bank of Canada.24
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In Brazil, the market is dominated by natural resources giants Vale and Petrobras. They sit alongside major financial groups such as digital banking giant Nu Holdings.35 The Mexican market is the region’s other large market, which is split across consumer groups, such as Walmart de Mexico, materials companies such as Cemex and financials such as Grupo Financiero Banorte.36 There are idiosyncratic opportunities across Latin America’s smaller markets, such as Argentina, Chile or Peru.
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North American markets have led global stock markets for over a decade. A handful of mega-cap technology companies have accounted for a significant part of this gain, fuelled by the growth in artificial intelligence, while other parts of the market have lagged.30
South American markets are often volatile. Performance may be at the top or bottom of global performance tables in any given year. Periods of weak performance have tended to be followed by periods of very strong performance.11 The region tends to do well when global risk appetite is high and investors are willing to explore new markets.
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The BlackRock American Income Trust targets long-term capital growth while paying an attractive level of income. The Trust aims to deliver risk-controlled consistent returns by using a systematic investing approach combining the power of big data, artificial intelligence and human expertise.37
The BlackRock Latin American Investment Trust is a carefully selected portfolio of Latin America’s most compelling investment opportunities with the aim of delivering long-term income and capital growth.38
Annual performance to last quarter end (%) (GBP)
|
30/09/2024 |
30/09/2023 |
30/09/2022 |
30/09/2021 |
30/09/2020 |
|
|
Price |
21.44 |
5.36 |
17.68 |
8.69 |
36.88 |
|
NAV |
14.67 |
5.97 |
14.35 |
7.67 |
46.68 |
|
Sector Price+ |
32.79 |
6.75 |
6.91 |
-7.38 |
33.51 |
|
Sector NAV+ |
21.10 |
13.58 |
1.33 |
-8.13 |
29.07 |
|
Reference Index‡ |
10.22 |
5.29 |
-3.95 |
11.98 |
22.05 |
† Morningstar IT Global Emerging Markets
‡ MSCI Frontier + Emerging Markets ex Selected Countries Index
The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index.
Our range
Source:
1 Worldometers - 7 continents - 3 November 2025
2 Worldometers - GDP by country - 3 November 2025
3 MSCI - MSCI World index - 31 October 2025
4 Statista - Financial markets in the U.S. - statistics & facts - 22 July 2025
5 NYSE - International Listings - 30 September 2025
6 FT - World Markets at a Glance - 3 November 2025
7 Investment Week - US GDP grows 3.3% in Q2 despite subdued trade - 28 August 2025
8 S&P - Global, sector performance - 24 November 2025
9 MSCI - MSCI EM Latin America - 31 October 2025
10 Economist Intelligence Unit - Latin America: converging policy rates - 30 October 2025
11 Global Finance Magazine - Latin America: Looking For Silver Linings - 29 October 2025
12 S&P Global - S&P 500 - 3 November 2025
13 Investopedia - How Apple Makes Money: iPhones, Services, and More - 13 November 2025
14 Apollo Academy - Share of S&P 500 revenues from outside the US - 12 January 2025
15 MSCI - MSCI World - 31 October 2025
16 Rio Times - Fed’s Mixed Signals Hit Chile’s Copper-Dependent Economy - September 18 2025
17 Trading Economics - Brazil Exports By Category - 31 October 2025
18 IMF - Western Hemisphere Department, Spring Meetings 2025 - 26 April 2025
19 Finimize - Latin American Assets Reach Highs As Risk Appetite Improves - 10 November 2025
20 Slickcharts - Dow Jones index - 3 November 2025
21 Nasdaq - Nasdaq composite index - 3 November 2025
22 Slickcharts - Nasdaq 100 - 3 November 2025
23 S&P Global - S&P TSX Composite - 3 November 2025
24 B3 - Ibovespa - 3 November 2025
25 S&P Global - S&P BMV IPC - 3 November 2025
26 Investopedia - AI Now Accounts for a Third of US Market Value—What That Means For The Economy - 3 November 2025
27 Investing News - Top 5 copper reserves by country - 21 August 2025
28 Investing.com - MercadoLibre - 24 November 2025
29 Morningstar - The 'Magnificent Seven' have never been this important to the stock market - and a big test lies ahead - 28 October 2025
30 S&P Global - US Market Cap - 28 November 2025
31 S&P Global - Dow Jones Averages - 28 November 2025
32 Statista- Financial markets in the U.S. - statistics & facts - 22 July 2025
33 NYSE - International Listings - 30 September 2025
34 S&P - S&P 500 - 25 November 2025
35 MSCI - MSCI Brazil - 31 October 2025
36 Tradingview - BMV-ME Components - 25 November 2025
37 BlackRock - BlackRock American Income Trust Plc - 25 November 2025
38 BlackRock - BlackRock Latin American Investment Trust plc - 25 November 2025
Risk Warnings
Investors should refer to the prospectus or offering documentation for the funds full list of risks.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time and depend on personal individual circumstances.
Fund-specific risks
BlackRock American Income Trust plc
Capital Growth / Income Variation, Currency Risk, Derivatives Risk, Derivative Risk (Derivatives, Options, Covered calls), Gearing Risk, Investment Trust Disclaimers.
BlackRock Latin American Investment Trust plc
Counterparty Risk, Currency Risk, Emerging Markets, Gearing Risk.
Description of Fund Risks
Capital Growth / Income Variation: Investors in the Fund should understand that capital growth is not a priority and values may fluctuate and the level of income may vary from time to time and is not guaranteed.
Counterparty Risk
The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
Currency Risk
The Fund invests in other currencies. Changes in exchange rates will therefore affect the value of the investment.
Derivatives Risk: Derivatives may be highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains, resulting in greater fluctuations in the value of the Fund. The impact to the Fund can be greater where derivatives are used in an extensive or complex way.
Derivative Risk (Derivatives, Options, Covered calls): The Fund uses derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are potentially subject to a higher level of risk.
Emerging Markets
Emerging markets are generally more sensitive to economic and political conditions than developed markets. Other factors include greater 'Liquidity Risk', restrictions on investment or transfer of assets and failed/delayed delivery of securities or payments to the Fund.
Gearing Risk
Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall.
Investment Trust Disclaimers: Net Asset Value (NAV) performance is not the same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance.
30/09/2024
-
30/09/2025
30/09/2023
-
30/09/2024
30/09/2022
-
30/09/2023
30/09/2021
-
30/09/2022
30/09/2020
-
30/09/2021
Price
21.44
5.36
17.68
8.69
36.88
NAV
14.67
5.97
14.35
7.67
46.68
Sector Price+
32.79
6.75
6.91
-7.38
33.51
Sector NAV+
21.10
13.58
1.33
-8.13
29.07
Reference Index‡
10.22
5.29
-3.95
11.98
22.05
† Morningstar IT Global Emerging Markets
‡ MSCI Frontier + Emerging Markets ex Selected Countries Index
The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index.