Global X, the exchange traded fund (ETF) provider behind funds covering Colombia, the Nordic countries and silver miners, is out today with a new one: mid-cap corporations in Brazil.
The Global X Brazil Mid-Cap ETF (NYSEArca: BRAZ) is the first fund to give investors pure exposure to Brazil’s mid-cap companies, defined as those with a market cap between $2 billion and $10 billion. The fund tracks the Solactive Brazil Mid Cap Index and has its largest weightings in utilities (20.8%), consumer staples (17.1%), industrial (16.2%) and financial (14.6%).
Global X CEO Bruno del Ama says his firm is interested in Brazil because it’s a large economy that’s growing rapidly and getting a lot of attention from investors as a result. [Latin America’s ETF Hotspots.]
Del Ama feels that the current options available to investors who want exposure to Brazil may not necessarily be the best ways to get access to the country’s high-quality companies with strong macroeconomic dynamics.
For example, iShares MSCI Brazil (NYSEArca: EWZ) gives exposure to many large companies in Brazil that are not as driven by the local economy, since they’re mainly commodity producers that are exporting their products around the world.