Brazil ETF Benefits From Economics and Agriculture

As exchange traded fund (ETF) investors look across the globe for investment opportunities, its hard to not take a second look at Brazil.  The economic leadership has enabled the country to grow and attract new capital, reports Mike Paulenoff of MarketWatch.  In 200, Brazilian companies were the second-largest source of foreign direct investment among developing countries.  The ETF representing the country, iShares MSCI Brazil (EWZ), has been a top performer.  Up 75% last year, and up 8.8% this year.

According to the Economist, Brazil’s economy has grown an average of 4.5% since 2004.  When compared to other fast-growing economies, such as Russia, India and China, there are some differences, which give the country an edge.  The Economist notes that the divide between the city and countryside isn’t very threatening.  With a multi-party democracy and freedom of expression, social change is easier to negotiate.  Brazil doesn’t have the aggressive nationalism that can be seen in the other countries.  Brazil has also faced and dealt with inflation and debt.

As agricultural products continue to rise, Brazil benefits.  They produce and export a large portion of the world’s beef, orange juice, soy beans, sugarcane and coffee.