What Brazil and ETF Are Getting Right | ETF Trends

Brazil is a leading nation in South America and has quickly risen to become a model of fiscal discipline, giving strength to their markets and related exchange traded funds (ETFs). What can we learn from them?

Like many other countries, Brazil has taken a few blows during this global recession. But the difference is that while other countries are borrowing capital, Brazil is contributing $4.8 billion to the International Monetary Fund. Beth Day Romulo for Manila Bulliton says much of the credit can be given to Presidnet Luis Inacio Da Silva, who has transformed Brazil and its economy. Brazil is now an emerging market with a rapidly growing middle class.

Brazil is currently enjoying a trade surplus with other nations, and this can be attributed to the abundant natural resources, in the form of oil and gas, metals, sugarcane ethanol and beef. Another key factor to Brazil’s health has been their interest in trade rather than military growth. Very little of the country’s annual budget goes to military equipment.

For many other positive reasons, Brazil is expected to continue on its path toward growth and good relations with other countries.

  • iShares MSCI Brazil Index (EWZ): up 50.4% year-to-date

For more stories on Brazil , visit our Brazil category.

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.