ISHARES MSCI BRAZIL INDEX FUND $33.27 (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 Cia Itau Unibanco Holding (banking), 9.6%; AmBev SA (beer and beverages), 8.8%; Petrobras (oil and gas), 8.7%; Banco Brandesco SA, 7.1%; Vale do Rio Doce (mining), 5.3%; BRF SA (food), 4.2%; and Cielo SA (payment processing), 3.8%.
The ETF was launched on July 10, 2000. It has a 0.62% expense ratio.
The fund’s resource focus and concentration in certain companies, such as Petrobras and Vale do Rio Doce, add risk, but both are high-quality stocks. Sluggish exports and low resource prices continue to slow Brazil’s economic growth. But the long-term outlook is positive, especially as global economies rebound. As well, president Dilma Rousseff, reelected in late 2014, has promised less growthinhibiting government intervention in the economy.
iShares MSCI Brazil Index Fund is a buy.
