Global X, the NewYork-based ETF issuer perhaps best known for its sector-specific China ETFs, bulked up its international product lineup today with the launch of the Brazil Mid Cap ETF
With ongoing chaos in Europe and the dawn of the "new normal" low-growth environment in the U.S., the appeal of emerging markets has surged in recent years, with Brazil attracting significant interest from international investors. Brazil is home to the largest national economy in Latin American and eighth largest economy in the world. Brazil is included in the BRIC bloc of economies [Brazil, Russia, India, and China] that is expected to account for an increasingly large portion of GDP in coming decades, and investors are anxious to see how the country prepares for the global spotlight that will come with the hosting of the 2014 World Cup and 2016 Olympics.
The launch of BRAZ fills a hole left by other ETFs offering exposure to the region. The iShares MSCI Brazil Index Fund
The ETF industry has been praised for offering investors exposure to every corner of the globe, but may have received far too much credit for their contribution (see The Spain ETF's Secret). While funds focusing on almost every major national economy are available, many focus on megacap equities that generate revenue from around the world (and have a tendency to be big banks and oil companies). Recent years have seen the introduction of a number of small cap international ETFs, including funds focused on China, Japan, Australia, Canada, Taiwan, and South Korea (see Guide To Small Cap International ETFs).
Options for exposure to mid cap stocks in international markets are hard to find. The WisdomTree International MidCap Dividend Fund
Under the hood
The index underlying BRAZ contains approximately 40 companies with market capitalization in the range of $2 billion to $10 billion. Major holdings include cosmetics company Natura Cosmeticos, aeronautics firm Empresa Bras de Aeronautica
BRAZ will charge an expense ratio of 0.69%.
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