ETF Trends
ETF Trends

It is not often that a country has so many things going right. Brazil seems to be fortunate enough to have all the positive factors with little to impede its growth in its economy and related exchange traded fund (ETF).

Brazil has a fast-growing consumer market, investment-grade status on its sovereign debt, copious foreign reserves and a very productive agricultural sector, reports Juan Forero for The Washington Post. Additionally, recent findings by the government’s state oil company may soon make the country one of the world’s premier crude producers.

As a result of innovative government programs, more than 32 million of the country’s population of 198 million have entered the middle class since 2003, and around 20 million have left poverty behind. The $1.3 trillion Brazilian economy is larger than India’s or Russia’s, and its per-capita income is almost two times that of China’s. [How country’s leaders stoked Brazil’s growth.]

The recession in Brazil only lasted two quarters and recovery came on slowly, but close to a million new jobs were created in areas such as construction and retailing, which helped to buffer the impact of the drop in exports, writes Mario Osava for IPS News. Recent optimistic forecasts put Brazil’s GDP growth of at least 5% for 2010. [Where the BRICs are today.]

Foreign investments inundated the Brazilian markets as investors saw the potential in the markets. But the government has put a 2% tax on foreign capital entry back in October, which has kept the local currency from being over-valued and helped prevent speculative bubbles. [Brazil’s potential not yet realized.]

For more information on Brazil, visit our Brazil category.

  • iShares MSCI Brazil (NYSEArca: EWZ): up 2.2% in the last month

  • Market Vectors Brazil Small-Cap (NYSEArca: BRF): up 2.9% in the last month

Max Chen 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.