ISHARES MSCI BRAZIL INDEX FUND $53.35 (New York Exchange symbol EWZ; buy or sell through brokers) is an exchange traded fund that is designed to track the Brazilian stock market. The fund’s top holdings are Petrobras preferred shares (energy), 9.8%; Vale do Rio Doce (mining) preferred, 7.9%; Petrobras common, 7.3%; Cia Itau Unibanco Holding (banking), 7.1%; Banco Brandesco (banking) preferred, 6.4%; and Vale SA, 3.9%.
The fund’s concentration in certain stocks, such as Petrobras and Vale do Rio Doce, adds risk, as does its focus on the resource sector. However, both are high-quality stocks.
Brazil’s economy is forecast to grow at just 1.5% this year. Domestic consumption remains strong, but exports have slowed. Still, growth could rebound to as high as 4.0% next year.
The ETF was launched on July 10, 2000. It has an expense ratio of 0.59%.
iShares MSCI Brazil is a buy for safety-conscious investors willing to accept some risk.
