Brazil ETFs Get a Lift from China

Stronger-than-anticipated industrial numbers from China had a nice side effect for Brazil and its related ETFs: it heightened investor risk appetite

Chinese factory output growth surged to a 19-month high in October. China, the world’s third-largest economy and a voracious commodities consumer, is widely considered a driver in a global economic recovery, reports Luciana Lopez for Reuters. The numbers gave investors the confidence they were seeking to move toward greater emerging market risk.

President Luiz Inacio Lula da Silva is confident that Brazil’s economy will grow by 5% in 2010 and expects foreign reserves to reach $300 billion, further signaling a recovery for the Latin American country, reports Alex Lawler for Reuters.

Brazil’s strong pace of recovery is another signal that the rapidly growing country has emerged from a recession; it posted 8%-10% growth in the third quarter, reports Industry Week.

• iShares MSCI Brazil Index (NYSEArca: EWZ): up 120.8% year-to-date

• Market Vectors Brazil Small Cap (NYSEArca: BRF): up 29.5% since inception