The World Cup, which has done little to boost the fortunes of EWZ and other Brazil ETFs, could prove particularly problematic for Brazilian output. Not only does the country become all but paralyzed when its national team plays, but “a law passed last year gives the 12 cities hosting World Cup matches, and the states where they are located, the right to declare special holidays on game days,” Reuters reported.
In addition to an almost 27% weight to financial services stocks, EWZ’s allocates a combined 23% of its weight to materials and industrial names, groups that could be decent ideas in the early part of 2014 as manufacturers increase output in anticipation of Carnival and World Cup lulls.
The $203.5 million Market Vectors Brazil Small-Cap ETF (NYSEArca: BRF) has an almost 39% weight to Brazilian discretionary stocks, indicating that could be a possible beneficiary of increased tourism for Carnival and the World Cup. Earlier this month, BlackRock lowered its rating on Brazilian equities to neutral. [BlackRock Isn’t too Fussed on These Emerging Markets]
Market Vectors Brazil Small-Cap ETF
