Brazilian ETFs & Stocks To Consider

By Investopedia Staff | May 16, 2012 AAA

Brazil, just like other emerging BRIC markets, seems to be well positioned for new growth opportunities. Brazil, Russia, India and China will likely have years, if not decades, of tremendous growth in their futures when compared with the developed markets. (For background reading, see Investing In Brazil 101.)

Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.

The Brazilian economy is the 10th largest economy in the world. Despite losing half its value a few years ago, Brazil's stock market index, the Bovespa, has already recovered close to its pre-recessionary highs.

Brazil has a few key things going for it: It is is one of the few countries in the world that is self-sufficient in oil; it is a leader in alternative energy sources; it produces more ethanol than Asia and Europe combined; it is also the second-largest producer of iron ore in the world. So, all things considered, investors interested in Brazil should focus on commodities, infrastructure, and even housing. After all, as the nation changes its focus from rural to urban living, the basic demands of a growing middle class will need to be met.

Investors can generally invest in Brazil by holding sector ETFs. The most notable of these include iShares MSCI Brazil Index Fund (ARCA:EWZ), WisdomTree Dreyfus ETF BZ Real Fnd (ARCA:BZF) and Market Vectors Brazil Small Cap ETF (ARCA:BRF). For those who are interested in buying individual stocks, check out the following list of core Brazilian stocks.




Company

Market Cap

YTD % Gain/Loss

BRF - Brasil Foods S.A. (NYSE:BRFS)

17.4B

-17.08%

Energy Company Of Minas (NYSE:CIG)

16.22B

+34.23%

CPFL Energy (NYSE:CPL)

14.55B

-9.53%

5/16/2012



Bottom Line
Brazilian equities are not cheap. However, Brazil is set to enjoy years of prosperity, and investors seeking direct emerging market exposure may want to keep Brazil on a close watch list. (For more, see Forging Frontier Markets.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

comments powered by Disqus
Related Analysis
  1. Trend Following Tips for ETF Investors
    Chart Advisor

    Trend Following Tips for ETF Investors

  2. Forget About Falling Oil, Look Into These 5 MLPs
    Chart Advisor

    Forget About Falling Oil, Look Into These 5 MLPs

  3. When To Buy Strongly Performing Stocks
    Chart Advisor

    When To Buy Strongly Performing Stocks

  4. ChartAdvsor for October 24, 2014
    Chart Advisor

    ChartAdvsor for October 24, 2014

  5. The ADX Shows Strong Uptrends In These 4 Stocks
    Chart Advisor

    The ADX Shows Strong Uptrends In These 4 Stocks

Trading Center