ETF Spotlight on iShares MSCI Brazil Index Fund (NYSEArca: EWZ), part of a weekly series.
Assets: $13.4 billion
Objective: The fund tries to reflect the performance of the MSCI Brazil Index.
Holdings: Top holdings include Petrobras Petroleo Bras-PR 11.58%, Cia Vale Do Rio Doce 9.68%, Petrobras – Petroleo Bras 9.44%, Itau Unibanco Banco Multiplo SA 8.37% and Cia Vale Do Rio Doce-ADR 7.22%.
What You Should Know
- Materials is 25.27%, Energy is 24.25% Financials is 22.96%, Consumer Staples is 8.53%, Utilities is 5.37%, Consumer Discretionary is 4.42%, Industrials is 2.73%, Info Tech is 1.75% and Health Care is 0.79%.
- The Fund has 88 holdings.
- EWZ has an expense ratio of 0.61%.
- Currently, EWZ is nearing a 52-week high. The ETF is also a popular emerging market trade amongst investors, especially for those who are playing a bearish bet on the U.S. dollar.
The Latest News
- Brazil this week said it would extend a tax on offshore dollar loans as it tries to cool its currency’s rise.
- The benchmark Selic rate of 11.75% is expected to be increased to at least 12% in mid-April, reports Kenneth Rapoza for Forbes.
- On Monday, Fitch ratings firm upgraded Brazil, which now stands at the second-lowest level of investment grade, due to its sustainable potential growth rate of an upward adjusted 4% to 5% over the long-term. Moody’s Investors Services and Standard & Poor’s also have Brazil at investment grade, but at Baa3 and BBB-, respectively.
- Brazil has a diverse economy and high demand dynamics, with large domestic companies like Petrobras, a large mining firm, Vale, one of the top three largest global miners and AmBev, Latin America’s largest brewery, writes Agustino Fonteveechia for Forbes.
- Brazil has experienced massive capital inflows, which has allowed the country to build a strong external liquidity position.
iShares MSCI Brazil
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.