ISHARES MSCI BRAZIL INDEX FUND $39.87 (New York symbol EWZ; buy or sell through brokers) is an ETF that is designed to track the Brazilian stock market.
Its top holdings are Cia Itau Unibanco Holding (banking), 9.2%; Petrobras (oil and gas), 8.1%; Banco Brandesco SA, 7.9%; AmBev (beer and beverages), 7.5%; Vale do Rio Doce (mining), 5.8%; BRF SA (food), 4.3%; and Cielo SA (payment processor), 3.3%.
The ETF was launched on July 10, 2000. It has a 0.61% 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, newly re-elected president Dilma Rousseff has promised less government intervention in the economy.
iShares MSCI Brazil is a buy.
