Cross-Border ETFs Surge to $195B in Latin America
Latin American investors are increasing allocations to globally oriented exchange-traded funds as strong cross-border equity returns, low costs and growing availability through regional exchanges make the vehicles more accessible to institutions and individuals.
Latin American pension funds and onshore mutual funds held $195 billion in cross-border ETFs as of March, according to Cerulli Associates’ “Latin American Distribution Dynamics 2026” report.
Mexican retirement funds, known as Afores, and mutual funds accounted for nearly half the total. Chilean and Colombian pension fund administrators, or AFPs, held approximately $85 billion of the remaining assets.
Demand has been supported by U.S. equity performance, ETF liquidity and increased promotion by Latin American exchanges. Cerulli said active managers entering the market should consider UCITS-wrapped active ETFs, which could allow them to compete with passive products without directly replacing higher-fee traditional funds.
Thomas Ciampi, director of Latin Asset Management, Cerulli’s strategic partner in the region, said Mexico and Chile’s shift toward target-date and life-cycle pension structures could also create opportunities for actively managed funds and private-market vehicles.
Alternatives have become a more significant component of high-net-worth portfolios in Chile, Peru and Colombia. Cerulli estimated the three countries’ addressable alternatives market at $60 billion to $120 billion.
Feeder funds have helped broaden access by lowering minimum investments to between $100,000 and $250,000, compared with the $5 million to $10 million generally required for direct commitments.
The expansion comes alongside a broader recovery in regional savings. Latin American pension systems added about $350 billion in 2025, ending the year with $1.1 trillion after losing $118 billion in 2024.
Regional mutual fund assets exceeded $2 trillion for the first time, rising 31% from $1.6 trillion. Cerulli cautioned that currency translation contributed substantially to the increase as the U.S. dollar weakened, magnifying local-market gains when reported in dollars.
