ETF Trends
ETF Trends

Brazil and its exchange traded fund (ETF) are already growing, but what happens when a new offshore field is discovered? This new oil field could turn the country into a global exporter and make Brazil the No. 8 energy producer, up from No. 17, reports Investor’s Business Daily. The new field is just what the president was looking for: more oil so energy prices would be lower and available to the poor, who often cannot afford the high energy prices.

Then the question comes into play, should/would Brazil join OPEC? But with OPEC setting production quotas, that may not help make energy plentiful or keep down costs. There could be as many as 100,000 barrels a day by 2011. Some say Brazil should not join OPEC, but should instead be independent so the people of Brazil can benefit as well as other oil-dependent nations.

Energy makes up 24.7% of EWZ, which is up 76.7% year-to-date. Petrobras, Brazil’s state oil company, is the top holding at 13.5%.


For full disclosure, some of Tom Lydon’s clients own EWZ.

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.