Brazil ETF

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DEFINITION of 'Brazil ETF'

An exchange-traded fund that invests in Brazilian stocks, either through local stock exchanges or with American and global depositary receipts on European and U.S. stock exchanges. Brazil ETFs are passively managed and are based on a country index created by fund managers, or a widely followed third party index.

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BREAKING DOWN 'Brazil ETF'

Brazil ETFs might be overweight in certain sectors compared to a diversified U.S. fund like a S&P 500 fund. For example in 2008, the Brazilian economy is strong in areas like natural resource production and finance, but weaker in areas like healthcare, technology and consumer goods. Brazil's economy is considered vibrant in the world market, leading to its inclusion in the "BRIC" group along with Russia, India and China. As the country's financial markets open up to increased foreign investment, ETF choices should expand.

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RELATED FAQS
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    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  3. How are American Depository Receipts (ADRs) priced?

    The price of an American depositary receipt (ADR) is determined by the bank or other financial institution that issues it. ... Read Full Answer >>
  4. What is the difference between passive and active asset management?

    Asset management utilizes two main investment strategies that can be used to generate returns: active asset management and ... Read Full Answer >>
  5. How are American Depository Receipts (ADRs) exchanged?

    American depositary receipts (ADRs) are bought and sold on regular U.S. stock exchanges, either in the over-the-counter market ... Read Full Answer >>
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