Brazil ETFs Are On Fire

Brazil, and the ETFs that focus on the country, are on fire right now. Along with Brazil, the BRIC countries (Brazil, Russia, India and China) are expected to grow at a rapid pace during the next several decades.

Brazil does boast beaches and rain forests however, it's the economy that holds a lot of the attraction, according to Jonas Elmerraji of TheStreet.com. Manufacturing ranges from turbine aircraft to orange juice to professional services.

Brazil's enterprise has helped the financial services sector take off. The Brazilian consumer has stepped up and is enjoying a loftier lifestyle. These are some of the ETFs which allow for market exposure in Brazil without all the hassle of regulated market:

iShares MSCI Brazil Index (EWZ) This ETF is up 45.6% for the year.

SPDR S&P Emerging Latin America (GML) Brazil makes up 56.7% of GML, which was launched in March. It is up 21.4% for three-months.

iShares S&P Latin America 40 Index (ILF) Brazil makes up 57% of ILF and is up 34.5% year-to-date.

Claymore/BNY BRIC (EEB) Brazil makes up 47% of EEB and it is up 29.9% this year.

SPDR S&P BRIC 40 (BIK) This ETF was recently launched and Brazil makes up 26.7%.

SA Editor: For closed end funds as well, see Single Country Emerging Markets ETFs and Closed-End Funds and Single Country Americas ETFs and Closed-End Funds

Comments

[Mtn153:]

Dear Tom,
You've hit the nail on the head with your report on Brazil. I find myself in disbelief at the number of articles that are coming out about other countries, while missing Brazil. Their government has been very aggressive about chasing American corporations and encouraging them to move to Brazil with sweetheart deals on taxes and assistance with plant manufacturing costs, etc,etc(Johnson and Johnson is a great example). Small wonder that they are doing so well! Personally, I think that they are going to continue to grow at the top of the group because of a number or other reasons. First, they are energy independent. They have so much high octane Brazilian Sugar Cane Ethenol that they are already exporting both cane and ethenol. Archer Danials Midland (the biggest ethanol producer) just annoounced that they are going to build four processing plants to refine Brazilian Sugar Cane in the U.S. I'm told that you can get about 800% more gallons of ethanol from Brazilian Sugar Cane than you can from corn and without the costly fertilizers and pestisices. Perhaps American Farmers will take heed? Secondly, they have vertually no Muslims which means that they have no part in the developing Muslim/Christian Wars. Thirdly, they have a growing manufacturing center thanks to NAFTA and Fourth, they have a growing well educated middle class which appears to be at peace with their government. Again, thanks for a great, timely and insightful report! Now if more of the financial media will just wake up to this gem of a country......
Mike

2007 Jul 20 04:42 PM

[Tom Lydon:]

Thanks for your comments Mike. You make some great points and we'll continue to comment on Brazil. Have a great weekend. -Tom

2007 Jul 21 01:21 PM