ETF Trends
ETF Trends

Brazil has a new president, and with that, a new political agenda. Is the new leadership in Latin America’s hottest economy enough to goose Brazil exchange traded funds (ETFs) into 2011?

President Dilma Rousseff is the first woman to ever hold the office in Brazil. Thanks to her tireless work ethic and natural leadership ability, the country is riding a wave of post-election optimism, reports Fernando Luzio for Harvard Business Review. [Brazil ETFs: New President, New Rules.]

The new leadership comes at a crucial time for Brazil. The country’s citizens are hopeful for good reason, however: Dilma is likely to preserve the macroeconomic policies put in place over the last 16 years. She has also pledged to continue investment in infrastructure in order to get the country ready for the World Cup in 2014 and the Olympics in 2016. EGShares Brazil Infrastructure (NYSEArca: BRXX) might be a good opportunity in light of these pledges. [Brazil ETFs: The Positives and the Negatives.]

Brazil doesn’t want its recent growth to become runaway, however. Gerald Jeffries for The Wall Street Journal reports that Brazil’s central bank has introduced a list of measures to quell rapid growth and remove some inflation pressures. The measures are intended to cut liquidity in the market and stop the possibility of bubbles and negative risks.

With new leadership, renewed optimism and a fast-growing middle class, Brazil seems well-poised to stand with the best in 2011 if the country keeps doing what it’s doing.

  • iShares MSCI Brazil Index Fund (NYSEArca: EWZ)
  • Market Vectors Brazil Small-Cap ETF (NYSEArca: BRF)
  • iShares MSCI Brazil Small Cap Index Fund (NYSEArca: EWZS)

Tisha Guerrero 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.