Brazil ETFs Gear Up for World Cup, Olympics
February 5th 2012 at 6:00am by Tom Lydon
The Brazil exchange traded fund has broken above its 200-day moving average amid the rally in emerging markets.
Brazil has been the focus of many investors over the past few years, and 2012 could prove to be even bigger for the growth of the economy. Attention will be focused on Brazil, as it is the host country to the World Cup in 2014, and the Summer Olympics in 2016. Focused ETFs could get a boost from the extra investment.
In order for Brazil to get ready for the Summer Olympics, roads will have to be paved, new buildings constructed and more telecommunications will be developed. The large influx of tourists for both the World Cup and the Olympics will stoke the profits of companies from hoteliers to beer makers, reports Emerging Money. [ETF Chart of the Day: Brazil]
Even after the events have left town, the upgraded buildings and infrastructure should continue to add value to the country’s economy. EG Shares Brazil Infrastructure (NYSEArca: BRXX) should get a boost from the ongoing activity both before and after. The fund invests in telecom, utility and road building stocks. [ETF Chart of the Day: Infrastructure Funds]
Aside from the events, Brazil enjoys a strong economy and abundant natural resources. It is the fifth largest economy in the world with 20% of the world’s fresh water supply. The young population in Brazil and the great room for growth makes for convincing demographics. [Brazil ETFs Take A Breather]
The iShares MSCI Brazil Index (NYSEArca: EWZ) is also a a play on commodities. The country is a large producer and exporter of coffee, sugar, oil precious metals and mining extraction.
iShares MSCI Brazil Index
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.