Challenges ahead for this riskier Brazil ETF

Article Excerpt

Brazil is one of the top 10 global economies, and is richly endowed with a range of basic commodities. Still, the country currently faces significant challenges. Elevated inflation—amid supply disruptions—has driven up prices for food and other goods. As well, energy costs are up as the worst drought in a century hinders hydroelectric capacity. All this has precipitated a sharp tightening of interest rates. That will likely hurt already-weak domestic demand. At the same time, COVID-19 cases spiked in early 2022 with the arrival of Omicron. To cope, Brazil needs to keep accelerating its domestic vaccination campaign. Brazil has great long-term growth potential, although in the near term, the country needs to get its economy back on track. Here is one ETF that provides exposure to the top Brazilian publicly listed companies. It’s for investors who want to tap the country’s long-term prospects. ISHARES MSCI BRAZIL ETF $34.14 (New York symbol EWZ; TSI Network ETF Rating: Aggressive; Market cap: $4.8 billion) tracks the performance of the…