Brazil-related ETFs Benefit from Weak Dollar

September 25th at 4:30pm by Tom Lydon

As an emerging-market exchange traded fund (ETF), the iShares MSCI Brazil Index (EWZ) has been popular with many investors. Currently, it’s up 51.2% year-to-date. Brazil’s stock market had a record closing yesterday. In addition, Brazil’s currency, the real, gained 0.21% to 1.867 per U.S. dollar, Reuters reports. Analysts expect the long-term trend for the real to remain strong as long as investors are anxious about the U.S. housing sector. The real has appreciated 14.4% this year, reports Guillermo Parra-Bernal for Bloomberg.

Some other ETFs that invest in Brazil and their year-to-date performance include:

iShares S&P Latin America 40 Index (ILF) – Brazil makes up 59.3% of ILF and is up 36.4%.
Claymore/BNY BRIC (EEB) – Brazil makes up 49.6% of EEB and is up 44.3%.
SPDR S&P BRIC 40 (BIK) – Brazil makes up 25.1% of BIK, which is up 20.7% for the last three months since it launched in June.
SPDR S&P Emerging Latin America (GML) – Brazil makes up 54.8% of GML. It’s up 6.5% for the last three months since it launched in March.