Brazil’s national development bank will start buying local infrastructure bonds from companies next year as the government steps up efforts to improve the transport system, Bloomberg News reports.
EGShares Brazil Infrastructure (NYSEArca: BRXX) targets the country’s infrastructure while Market Vectors Brazil Small-Cap (NYSEArca: BRF) and iShares MSCI Brazil Small Cap (NYSEArca: EWZS) specialize in smaller companies.
Shares of Brazilian mining company Vale (NYSE: VALE) rose Thursday after the company said it plans to cut costs and sell some assets, although it reported disappointing quarterly earnings earlier this week.
Vale is the second-largest holding in EWZ at 7.6% of the portfolio.
Some highly-respected investors and hedge fund managers say Brazil is their favorite choice in emerging markets. [Smart Money Bets on Brazil]