ISHARES MSCI BRAZIL INDEX FUND $25.87 (New York symbol EWZ; buy or sell through brokers) is an ETF that’s designed to track the Brazilian stock market.
Its top holdings are AmBev SA (beer and beverages), 10.6%; Cia Itau Unibanco Holding (banking), 10.5%; Banco Brandesco SA, 10.2%; Petrobras (oil and gas), 7.2%; Cielo SA (payment processing), 3.9%; BMF Bovespa (Brazil’s stock exchange), 3.6%; BRF SA (food), 3.4%; Ultrapar SA (gas distribution and petrochemicals), 3.1%; and Itausa Investimentos SA (financial services), 3.1%.
iShares launched the ETF on July 10, 2000. It has a 0.64% expense ratio.
Sluggish exports and low resource prices continue to slow Brazil’s economic growth. State-controlled oil and gas giant Petrobras is also in the midst of a huge corruption scandal. As well, president Dilma Rousseff, who promised less government intervention in the economy, is now being impeached for alleged corruption.
Brazil still has strong long-term growth potential, but it needs to get its economy and political leadership back on track.
iShares MSCI Brazil Index Fund is a hold.
