ETF Trends
ETF Trends

Brazil’s economy has turned a corner, according to the country’s president. If that’s true, its exchange traded fund (ETF) could continue to enjoy the handsome performance it’s been delivering year-to-date.

President Luiz Inacio Lula da Silva announced that Brazil’s economy is showing sings of a recovery on all sides, thanks to a host of measures the country implemented to mitigate the effects of any recession.

  • The gap between the country’s richest and poorest denizens has stopped growing and could even be shrinking thanks to tax breaks, increased consumer credit and cash transfers to the poor, explains Mac Margolis for NewsWeek.

Of all emerging markets, Brazil entered into the recession with a better prospect for recovery, as its solid banking system, low inflation and tight monetary policy allowed the government to prime the economic pumps with lower lending rates while other countries were practically giving money away.

  • iShares MSCI Brazil Index (EWZ): up 73.3% year-to-date

For more stories about 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.