5-Star ETFs Poised to Pop: iShares MSCI Brazil

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares MSCI Brazil Index (NYSE: EWZ  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at iShares MSCI Brazil and see what CAPS investors are saying about the ETF right now.

EWZ facts

Inception July 2000
Total Net Assets $9.08 billion
Investment Approach Seeks to provide investment results that correspond generally to the price and yield performance of the Brazilian market
Expense Ratio 0.61%
Trailing Dividend Yield 6.9%
1-Year / 3-Year / 5-Year Annualized Returns (31.3%) / 8% / 9.4%
Major Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight Petrobras (NYSE: PBR  ) (17.7%)
Vale (NYSE: VALE  ) (15.8%)
Banco Bradesco (NYSE: BBD  ) (5.9%)
Alternatives Market Vectors Brazil Small-Cap (NYSE: BRF  )
SPDR S&P Emerging Latin America (NYSE: GML  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 2,128 members who have rated iShares MSCI Brazil believe the ETF will outperform the S&P 500 going forward. These bulls include Speachless and lgcphixion.

Earlier this year, Speachless listed several reasons to get bullish on Brazil: "Energy independent. Food producer for South America. Room for expansion. Solid Currency. Politically Stable."

EWZ in particular sports an annual turnover ratio of just 13%. That's lower than that of other Latin America ETF alternatives like Market Vectors Brazil Small-Cap (84%) and SPDR S&P Emerging Latin America (23%).

CAPS member lgcphixion elaborates on the bull case:

Since the 2008 crisis, several countries have recovered much more favorably than others. China of course being the main example, but Brazil is also well-positioned. Add to this the vast resources at hand in Brazil (mining and agriculture are big) and China's desperation to grab at it as factors into the future growth and resurgence of Brazil. Is in not a sign that with both the World Cup and Summer Games upcoming in Rio that Brazil is on the rise?

What do you think about iShares MSCI Brazil, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track iShares MSCI Brazil Index? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Petrobras. Motley Fool newsletter services have recommended buying shares of Petrobras. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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