This riskier Brazil ETF faces some challenges

Article Excerpt

Brazil is one of the top-10 global economies, and it is richly endowed with a range of base commodities. The country has great long-term growth potential, although in the near term, it needs to get its economy back on track. Here is one ETF that provides exposure to the top Brazilian publicly listed companies for investors who want to tap the country’s long-term prospects. ISHARES MSCI BRAZIL ETF $33.99 (New York symbol EWZ; TSI Network ETF Rating: Aggressive; Market cap: $6.0 billion) tracks the performance of the largest publicly listed Brazilian companies. Basic Materials and Energy account for 38% of the ETF’s assets, while Financials (23%), Industrials (12%), Utilities (10%), and Consumer Defensive (6%), are other key segments. The ETF holds a portfolio of 48 stocks; the top 10 make up a high 56% of its assets. Major holding include Vale SA (Basic Materials, 12.7%), Petroleo Brasileiro SA Participating Preferred (Energy, 8.5%), Itau Unibanco Holding SA (Financials, 7.8%), Petrobras (Energy, 6.9%), Bank Bradesco SA (Financials, 4.2%),…