BRXX has traded modestly lower since FIFA voiced its concerns and reiterated that Brazil must have all of its stadiums for World Cup use up to snuff by the end of this year.
The ETF could face an interesting dichotomy. Brazil will do all it can to appease FIFA and be ready for the World Cup. That much is obvious and those efforts could benefit some of the ETF’s constituents. However, BRXX is not always a lock to respond to news of Brazilian infrastructure spending. Making matters potentially worse is that Brazil could be one of the few markets, developed or emerging, that is a legitimate candidate for an interest rate increase as a means of damping inflation, news that could hamper any Brazil ETF.
EGShares Brazil Infrastructure ETF
ETF Trends editorial team contributed to this article.