If countries were sold at a price based on gross domestic product (GDP), Apple could technically buy countries like Brazil and Russia using its own market capitalization. The iPhone maker recently crossed the $2 trillion mark, which is more than a number of countries’ GDP.
“As the market capitalization of Apple Inc rose past the $2 trillion mark on Wednesday, and the company’s value soared to more than the GDP of a host of countries including Italy, Brazil, Canada and Russia,” an Economic Times report noted. “The Cupertino, California-based company’s shares briefly rose as high as $468.65 on Wednesday, giving it a market capitalization of $2.004 trillion, and surpassed the GDP of countries such as South Korea, Spain, Australia, Mexico, Indonesia, the Netherlands, Saudi Arabia, Turkey, Switzerland, Taiwan, UAE and Norway, among many others. ”
Nonetheless, ETF opportunities exist within emerging markets like Brazil and Russia. As more economies begin to reopen amid the transition from Covid-19 back to normalcy, EM countries could stand to benefit from the rebound.
ETF Opportunities in Emerging Markets
Emerging markets were anything but spared by the economic effects of the coronavirus pandemic. However, there are still opportunities to be had for investors looking towards Brazil to diversify their portfolios with EM exposure in Latin America via small cap equities using the VanEck Vectors Brazil Small-Cap ETF (BRF).
BRF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Brazil Small-Cap Index. The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index.
The index includes securities of Brazilian small-capitalization companies. A company is generally considered to be a Brazilian company if it is incorporated in Brazil or is incorporated outside of Brazil but has at least 50% of its revenues/related assets in Brazil.
Here are a pair of other funds to consider:
- VanEck Vectors Russia ETF (RSX): seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Russia Index. The index includes securities, which may include depositary receipts, of Russian companies. A company is generally considered to be a Russian company if it is incorporated in Russia or is incorporated outside of Russia but has at least 50% of its revenues/related assets in Russia. Such companies may include medium-capitalization companies.
- VanEck Vectors Russia Small-Cap ETF (RSXJ): seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Russia Small-Cap Index. The index includes securities of Russian small-capitalization companies. It will normally invest at least 80% of its total assets in securities of small-capitalization Russian companies.
For more market trends, visit ETF Trends.
