
- Invest in Brazil?
Brazil has the seventh largest economy in the world and the fifth largest as measured by land mass. With a population of 193 million and a 2 trillion dollar economy, it is a political and economic leader in Latin America. However, social and economic problems have kept it from being an effective global power. In the future, economic growth may drastically change the role of Brazil in our world.
Why Invest in Brazil
The booming global demand for commodities, particularly energy and agriculture, is a major proponent of a robust Brazilian economy. Brazil is now a global power in natural resources and agriculture; two of my top global investment trends that I expect to enjoy strategic advantages for decades to come.
Brazilian exports are booming; and include aircraft, electrical equipment, automobiles, ethanol, textiles, footwear, iron ore, steel, coffee, orange juice, soybeans, and beef. It can meet growing demand for its? products with an ample and efficient work force at competitive prices. Billions of dollars in infrastructure investment is currently benefiting the country as they prepare to host both the 2014 World Cup and the 2016 Olympics.
Brazil has been increasing its? presence in international financial and commodities markets and is perfectly situated to take advantage of global growth trends. Many financial experts include Brazil in their risk on risk off trading. This means Brazil is considered a major player in world growth. Therefore, when investors want to invest in global growth, they should have Brazil as a part of their asset allocation.
Invest in Brazil Stocks with ETFs
Investing in Brazil Stocks through ETFs is how most investors should invest in Brazil. Since diversification is always paramount to reduce risk; an Exchange Traded Fund (ETF) is the most cost effective means to invest in Brazil. Here are ETFs traded in the United States:
Brazil ETFs based on Market Capitalization:
Ishares MSCI Brazil Fund ETF (EWZ)
Global X Brazil Mid Cap ETF (BRAZ)
Market Vectors Brazil Small-Cap (BRF)
MSCI Brazil Small-Cap Index Fund (EWZS)
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Brazil Sector ETFs ?
EGS INDXX Brazil Infrastructure ETF (BRXX)
Global X Brazil Consumer ETF (BRAQ)
Global X Financials ETF (BRAF)
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Brazil Leveraged ETFs -
ProShares Ultra MSCI Brazil ETF (UBR)
ProShares Ultra Short MSCI Brazil ETF (BZQ)
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Investing in Brazil
Brazil is well positioned to participate in global growth trends. Investors who want to participate in growth of the Brazilian economy can invest in Brazil stocks through a variety of Brazil ETFs.
(Disclosure: The Arbor Asset Allocation Model Portfolio (AAAMP) has a 1.3% position in BRF and 1.2% position in EWZ; no positions in BRAZ, EWZS, BRXX, BRAQ, BRAF, UBR, or BZQ on 2/12/12.)
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Source: http://blog.arborinvestmentplanner.com/2012/02/why-and-how-to-invest-in-brazil/
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