Brazil’s ETF Could Retain Its Looks Through 2008

Brazil is generally known as the land of really good-looking people, and that tendency toward good looks extends to its exchange traded fund (ETF).

The iShares MSCI Brazil Index (EWZ) was among the top performers for 2007, and Dave Mock for the Motley Fool takes a good look at the fund for investors who might be interested in hitching a ride.

Three sectors make up the top five holdings in the fund: energy (25.1%), industrial materials (22.6%) and financial services (6.1%).

Mock takes a look at some of the top-performing stocks in the fund and uncovers even more burgeoning industries in Brazil that could keep the fund in solid shape. Several wireless stocks have doubled in 2007, and the country’s largest cellular service provider in the country is investing heavily in expanding its network. Oil is another area singled out to potentially be a strong performer in the country this year. Petroleo Brasileiro, the fund’s number one holding at 13.6%, not only has a monopoly on exploration, refining and production, but it holds extensive rights to oil and gas reserves around the world.