ISHARES MSCI BRAZIL INDEX FUND $48.89 (New York Exchange symbol EWZ; buy or sell through brokers) is an exchange traded fund that is designed to track the Brazilian stock market.
Top holdings are Petrobras (oil and gas), 11.8%; Vale do Rio Doce (mining), 9.6%; Cia Itau Unibanco Holding (banking), 7.5%; Banco Brandesco preferred, 6.1%; Cia de Bebidas das Americas (beer and beverages), 5.7%; and BRF SA (food), 4.0%.
The ETF was launched on July 10, 2000. It has an expense ratio of 0.62%.
The fund’s resource focus and concentration in certain stocks, such as Petrobras and Vale do Rio Doce, add risk. But both are high-quality stocks.
Falling exports and resource prices have slowed Brazil’s economic growth to just 2.1% this year. However, its long-term outlook is positive, especially as global economies rebound.
iShares MSCI Brazil is a buy for safety-conscious investors who are willing to accept some risk.
