Brazil ETF

AAA

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.

INVESTOPEDIA EXPLAINS '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.

VIDEO

Loading the player...
RELATED TERMS
  1. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  2. Single-Country Fund

    A mutual fund that restricts its investment to the assets of ...
  3. Dow Jones BRIC 50 Index

    A market capitalization-weighted stock index containing 50 of ...
  4. BRIC ETF

    An exchange-traded fund that invests in stocks and listed securities ...
  5. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  6. Welfare Capitalism

    Definition of welfare capitalism.
Related Articles
  1. Markets

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  2. Mutual Funds & ETFs

    Go International With Foreign Index Funds

    As global trade continues to expand and the world's economies grow, spice up your portfolio with these exciting opportunities.
  3. Fundamental Analysis

    An Evaluation Of Emerging Markets

    Get the full story on this asset class before you write it off as too risky.
  4. Investing Basics

    Why Country Funds Are So Risky

    High returns come at a price, but country funds may still be a good bet.
  5. Economics

    What Is An Emerging Market Economy?

    Emerging markets provide new investment opportunities, but there are risks - both to residents and foreign investors.
  6. Mutual Funds & ETFs

    Exchange-Traded Funds (ETFs)

    This vehicle combines the diversification of a mutual fund with the flexibility of a stock. Learn more about them here.
  7. Investing

    Welcome Back, Volatility

    Volatility is likely to resurface as the Federal Reserve gets closer to adjusting its monetary policy stance, even if that adjustment is a measured affair.
  8. Active Trading Fundamentals

    Where And How To Trade Energy Stocks

    Energy futures set a high bar to entry for individual traders and investors, redirecting exposure into sector equities and exchange-traded funds.
  9. Mutual Funds & ETFs

    Want to Focus on Tech? Consider this ETF

    QQQ has appreciated over 75% over the past three years. Is this trend likely to continue?
  10. Mutual Funds & ETFs

    How Trading ETFs is Different from Trading Stocks

    We explain when ETFs may be better suited than stocks for inclusion in a portfolio.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center