Despite Brazil hosting the 2014 World Cup and the 2016 Summer Olympics, Brazilian stock related exchange traded funds have not lived up to the investment hype.
David Garff of Accuvest points out that the promise of a Brazilian revival in anticipation of hosting two global events has fallen short, reports Jeff Macke for Yahoo! Finance.
“The infrastructure investment didn’t happen as fast as everybody thought and they weren’t as profitable as everybody thought,” Garff said in the article. “They aren’t really ready yet.”
For instance, the EGShares Brazil Infrastructure (NYSEArca: BRXX), which focuses on Brazil’s infrastructure sector and began trading on February 24, 2010, has declined 10.6% since inception. [ETF Chart of the Day: Bad News Brazil]
Brazil, Latin America’s largest economy, has been stung on multiple fronts this year. Slack global commodities demand has sent shares of Vale (NYSE: VALE), the world’s largest iron ore producer, and Petrobras (NYSE: PBR), Brazil’s state-run oil company, down.