What's Wrong With Brazil ETFs?
By Gary Gordon: Last October, enthusiasm for Brazil had reached epic proportions. And why not? Not only had the iShares MSCI Brazil Fund (EWZ) risen 175% off its November 2008 lows, but the country constitutes one of the essential building blocks in the BRIC (Brazil, Russia, China, India) fortress. Indeed, the country boasts the world’s seventh largest economy, a consumption-oriented middle class and a treasure trove of natural resources. What’s more, Brazil figures to see a surge in tourism as well as infrastructure commitment due to the 2014 FIFA World Cup and the 2016 Olympics. So what in the world is wrong with Brazil ETFs? Year-over-year, they’ve experienced some of the harshest capital depreciation in the exchange-traded universe.
Popular Brazil ETFs: 1 Year Underperformance
Approx %
S&P 500 SPDR Trust (SPY) 7.4%
WisdomTree Currency Brazilian Real (BZF) 3.5%
EGShares Brazil Infrastructure (BRXX) -2.2%
Vanguard MSCI Emerging Markets (VWO) -7.3%
Global X Brazil ConsumerComplete Story »
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