Argentina’s Market Rise: How Investors Can Benefit from Milei’s Reforms

Maybe It’s Time for Investors to Take a Closer Look at Argentina

Global X MSCI Argentina ETF (ARGT) is up more than 8% this year, outperforming the S&P 500. The Merval Index, Argentina’s main stock index, is down 17% in 2025, but remains over 47% higher over the past 12 months, outpacing most other global markets.

For years, foreign investors have been cautious about Argentine stocks as economic and political turmoil caused sudden market swings. But now, with President Javier Milei lifting strict capital controls, the sun may be shining on this market.

“We have a moderately negative to neutral view on equities, currencies, and bonds in emerging markets. This includes India, Brazil, China, and Central Europe,” said Juan Egana, emerging markets strategist at BCA Research, in an interview with CNBC. “The only country we truly have a positive view on is Argentina.”

The hope is that easing capital controls will lead to an inflow of foreign investors willing to put money into the Argentine market. This move came last month, when the country secured $20 billion in financing from the International Monetary Fund over four years; $12 billion of those funds were disbursed immediately.

“In a world of global financial uncertainty and rising populism, Argentina stands out as a free-market haven,” wrote BCA’s chief emerging markets strategist Arthur Budaghyan in a note dated April 22.

This comes as the U.S. announces strict tariffs on imports from a number of countries. These tariffs trigger volatile swings in global markets, which rise on any hint of progress or fall on any sign of failure.

However, Diego Pereira, JPMorgan’s chief economist for South America, says the ideological similarities between Milei’s administration and Trump’s White House may bring the countries closer — ultimately benefiting Argentina. Milei’s views on trade align with Trump’s tariff rhetoric, with the Argentine president threatening to leave the South American trade bloc Mercosur if that would help strike a deal with the U.S.

“Argentina is taking many steps in the right direction in a world that is becoming more fragmented, where trade may not be as important as it used to be,” Pereira said.

Egana of BCA also praised Milei’s measured approach to stabilizing Argentina’s economy before removing the country’s capital controls. This removes a key concern for investors and businesses — that their funds would be trapped in Argentina, he said.

“If you can’t get your money out, what good is it to an investor?” Egana added.

How to Play the Market
Investors who want exposure to Argentine stocks can do so through the ARGT ETF. The fund, which leans toward companies in consumer goods, financial services, and energy sectors, has an expense ratio of 0.59%.

For those seeking individual stock picks, MercadoLibre may be a compelling opportunity. About 85% of analysts surveyed by FactSet rate the stock as a “buy,” with their price targets suggesting an additional 8% upside. The company’s shares have surged more than 44% in 2025.
Barclays analyst Trevor Young notes that the company is more insulated from Trump’s tariffs compared to competitors due to MercadoLibre’s focus on South America. Only a small portion of the company’s operations are based in the U.S., allowing it to operate almost without disruption, he adds.

“We think MELI performs relatively well compared to its peer group, as it sells entirely in Latin America and has only one logistics hub in Texas servicing Mexico, so the recent U.S. tariff changes don’t affect the company,” Young said.