For example, government officials promised $1.3 billion in infrastructure projects for Natal, Brazil. “Natal would build a state-of-the-art new arena, authorities said, and all manner of additional infrastructure, too. They promised a light rail network, a new hospital, a beachfront facelift and wheelchair-friendly sidewalks,” Reuters reported. Less than a month before the World Cup starts, Natal has seen less than of the promised $1.3 billion spent.
It is anecdotes like that have hampered BRXX. The ETF is up 1.7% in the past month, a far cry from the 20% delivered by the EGShares India Infrastructure Index Fund (NYSEArca: INXX) over the same period. [Election Results Could Boost India Infrastructure ETF]
There is still hope and a bull case for BRXX. Fitch Ratings says that while Brazil’s airports are prepared to handle World Cup traffic, the country’s “inner-city transportation network lags that of airport infrastructure.” Perhaps a hard World Cup lessons will bolster infrastructure ahead of the 2016 Summer Olympics.
Additionally, BRXX’s underlying index has a dividend yield of 4.91%. Brazil is expected to post the largest dividend growth among the BRIC nations this year with payouts there rising by 13.6% or $40 billion. [ETFs for Rising Emerging Markets Dividends]
EGShares Brazil Infrastructure Index Fund
