Brazil ETF

Economies in Latin America tend to go either full throttle uphill or downhill. The same can be said by all emerging markets. To make this more complicating, Brazil is as well an emerging market as a Latin American country. So, what to expect from Brazil?

One thing to add as an extra, in Brazil they may experience bad economic times for years in a row, so a bit of patience in finding the right entry point is always good advice. That being said, Brazil has a lot of things that sets it apart from other countries in the region.

It has a better developed economy and the Brazilian technology sector is very advanced and can compete on the same level as many Western and Asian countries. Right behind Boeing and Airbus, Embraer (a 100% Brazilian company) is the world’s third largest aircraft builder.

Brazil also is rich in basic materials like ore and many other metals. It also has some oil fields but not as many as it would hope for. Another Brazilian shining star is Ambev, a Brazilian (and Belgium) Beer brewery and soft drink manufacturer with known brands as Skol and Stella Artois.

iShares MSCI Brazil UCITS ETF (Dist)

Both Embraer and Ambev are included in this iShares Brazil ETF. Ambev occupies the number 1 seat in this ETF with a 10% share. Over 30% is swallowed by the financial sector, a common trait of these regional ETF’s.

Consumer goods altogether represent 30% of this ETF. Basic materials and the energy sector are each good for 10%. This particular regional ETF is a physical ETF which means that the underlying stocks are bought. Quarterly dividends will be paid out.

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