COLUMN-The score on Brazil as a long-term investment

lunes 16 de junio de 2014 11:03 GYT
 

(The opinions expressed here are those of the author, a columnist for Reuters)

By John Wasik

CHICAGO, June 16 (Reuters) - The beginning rounds of the World Cup have offered thrills to global soccer fans. But what should excite investors about Brazil?

The South American country is brimming with natural resources and growth possibilities. Despite concerns about its growth slowdown and its preparations for the upcoming Olympics, the country can be a good holding if global population growth remains on course.

There are more than a dozen exchange-traded funds (ETFs) that hold Brazilian stocks exclusively. They vary from broad-based index funds to specialized ETFs that use leverage to amplify market moves.

The largest ETF covering Brazil is the $4 billion iShares MSCI Brazil Capped fund, which holds large companies such as Itau Unibanco, Ambev SA and Banco Bradesco SA. The fund is up 11 percent year to date through June 13, compared with a 6.4 percent rise for the Morningstar Latin America stock index. The fund charges 0.61 percent in annual expenses.

A runner-up in Brazilian funds is the Market Vectors Brazil Small-Cap ETF, which holds small companies such as SUL AMERICA SA, Odontoprev SA and Mills Estruturas. The fund charges 0.60 percent in annual expenses and is up 4 percent year to date through June 13.

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