Brazil needs to harness its huge potential

Article Excerpt

Several factors contributed to Brazil’s 2015-2016 recession, one of its worst: political turmoil, corruption at one of the country’s major corporations, volatile commodity prices, and high inflation. However, starting in 2017, the country has slowly emerged from that crisis. which is fuelling new hope for its top companies. Here is one ETF that provides exposure to Brazil’s leading publicly listed companies. ISHARES MSCI BRAZIL ETF $31.25 (Nasdaq symbol EWZ; TSI Network ETF Rating: Aggressive; Market cap: $5.5 billion) tracks the performance of the largest publicly listed Brazilian companies. Financial Services account for 34% of the fund’s assets. Its other key segments are Basic Materials (21%), Consumer Defensive (11.0%), Energy (11.0%) Consumer Cyclical (6.7%) and Industrials (5.1%). The ETF holds a portfolio of 54 stocks; the top 10 holdings make up a sizeable 55% of its assets. They are Vale SA (basic materials, 12.5%), Itau Unibanco Holding SA (financials, 10.5%), Bank Bradesco SA (financials, 7.2%), Petroleo Brasileiro SA (energy, 4.8%), Ambev SA (consumer defensive, 4.4%), B3 SA–Brazil…

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