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This short article is the second installment in my Emerging Market ETFs series. The series aims to provide targeted investment options for emerging market investors. If you would like to read my recent article on Chinese exchange traded funds, you can find it here. Below, I will introduce four exchange traded funds that offer investors exposure to infrastructure, the consumer space, large-caps, and small-caps.

EGShares Brazil Infrastructure ETF (BRXX)

For investors looking for exposure to Brazil's organic urban growth, the EGShares Brazil Infrastructure ETF should do the trick. The fund was designed to replicate the performance of the Indxx Brazil Infrastructure Index. The fund is composed of 30 different holdings with an average market capitalization of $13.33 billion. The current expense cap 0.85%. The current sector breakdown is as follows:

Sector% of Fund
Utilities33.85
Industrials23.04
Basic Materials13.97
Telecommunications13.48
Financials11.52
Consumer Services2.70
Consumer Goods1.02

The fund includes exposure to the metal miners, energy and power producers, transportation, utility, and water companies. Over the next few years, Brazil is expected to increase infrastructure spending substantially in preparation for the World Cup and Olympic games. The current industry breakdown is as follows:

Industry% of Fund
Electricity18.78
Gas, Water & Multiutilities15.08
Real Estate Investment & Services11.52
Industrial Transportation10.51
Fixed Line Telecommunications9.29
Industrial Metals & Mining8.88
Mining5.08
Aerospace & Defense4.97
Mobile Telecommunications4.19

Be aware that the volume for the fund is light compared to its counterparts.

Global X Brazil Consumer ETF (BRAQ)

For investors looking for exposure to the consumer sector within Brazil, the Global X Brazil Consumer ETF will offer this exposure. The fund was designed to replicate the performance of the Solactive Brazil Consumer Index. The fund is composed of 27 holdings with an average market capitalization of $8 billion. The current industry breakdown is as follows:

Industry% of Fund
Food & Beverage47.99
Personal & Household Goods20.27
Retail18.19
Travel & Leisure12.94
Media0.61

On a valuation basis, the fund is expensive compared to its counterparts. The fund is trading at 31 times earnings and 1.50 times book. The fund has a management fee of 0.77%.

iShares MSCI Brazil Index Fund (EWZ)

The EWZ is composed of 84 large-cap and mid-cap Brazilian companies. On February 11, 2013, the fund will be renamed the iShares MSCI Brazil Capped Index Fund and seek to replicate the performance of the MSCI Brazil 25/50 Index. The fund is one of the most liquid and oldest Brazilian exchange traded funds on the market. The current sector breakdown is as follows:

Sector% of Fund
Financials27.74
Materials18.75
Energy16.28
Consumer Staples14.91
Utilities5.59
Industrials5.03
Consumer Discretionary4.41
Telecommunications3.25

On a valuation basis, the EWZ is rather expensive, with a price to earnings ratio of 19.43 and a price to book ratio of 3.88. The fund currently has a 12-month yield of 2.84% with an expense cap of 0.61%.

Market Vectors Brazil Small-Cap ETF (BRF)

If you are looking to gain to exposure to Brazilian small-cap companies, then the Market Vectors Brazil Small-Cap ETF will do just that. The fund was designed to replicate the performance of the Market Vectors Brazil Small-Cap Index. The fund is composed of 74 companies with an average weighted market cap of roughly $1.7 billion. 82.8% of the fund has a market capitalization between $1.0 billion and 5.0 billion. The current sector breakdown is as follows:

Sector% of Fund
Consumer Discretionary37.3
Industrials18.9
Financials12.6
Utilities7.6
Healthcare7.1
Materials6.3
Energy3.7
Consumer Staples3.7
Telecommunication Services2.6

2012 was a good year for investors -- the fund returned 18.82% on the year. On a valuation basis, the price to earnings ratio is 17.82 and the Price to Book ratio is 1.53. The fund currently has a net expense ratio of 0.59%.

Source: Emerging Market ETFs: Brazil