How to Invest in Brazil With ETFs
For investors who want exposure to the country of Brazil in their portfolio, there are a few ways to invest in the region. You can consider some emerging market ETFs that include Brazilian companies in their holdings like ADRE, the BLDRS Emerging Markets 50 ADR Index ETF or BRAQ, the Global X Brazil Consumer ETF.
You can consider a currency ETF that either includes the Brazilian Real in its basket or even a currency fund specific to the Real. Or you can even research a BRIC ETF that includes securities from only the regions of Brazil, Russia, India, and China in its holdings, like BK, the iShares MSCI BRIC Index ETF.
But if you want to invest in a Brazil asset by itself, then you want to consider these country-specific ETFs that focus on Brazil only.
List of Brazil ETFs
- BRF - VanEck Vectors Brazil Small-Cap ETF
- BRZU - Direxion Daily Brazil Bull 3X Shares ETF
- BZQ - ProShares UltraShort MSCI Brazil ETF
- EWZ - iShares MSCI Brazil Index ETF
- EWZS - iShares MSCI Brazil Small-Cap Index Fund
- UBR - ProShares Ultra MSCI Brazil Capped
- BRAQ - Global X Brazil Consumer ETF
- BRAZ - Global X Brazil Mid Cap ETF
- FLBR - Franklin FTSE Brazil ETF
And while these are the current Brazil ETFs on the market as of January 2020, we have lost some funds over the years due to various reasons. So if you come across either of these funds in your research, be aware that they are no longer trading on any exchanges as of January 2020.
Closed Brazil ETFs
- BRAF - Global X Brazil Financials ETF
- BRXX - EGShares Brazil Infrastructure ETF
- FBZ - First Trust Brazil AlphaDex Fund
- BZF - WisdomTree Brazilian Real Strategy Fund
- DBBR - DBX MSCI Brazil Currency-Hedged Equity Fund
Do Your Research
There’s no doubt that Brazil is becoming a popular target for investors. Some bullish and some bearish. So if you want to make a play for the country in your investment strategy, take the time to consider the above Brazil ETFs.
However, it's not a simple as picking a fund on this list and buying it, you must conduct thorough research and your due diligence. As with any investment, a company stock, an ETF, Index or otherwise, please make sure you analyze these exchange-traded funds or any financial asset before making any trades (long or short). Watch how they react to different market conditions, take a look under the hood and see what is in the fund. And if you have any questions or concerns, make sure you consult a broker, a financial advisor, or another financial industry professional.
While ETFs have many advantages, they have many disadvantages as well (as does any investment). So it is very important to understand the investment vehicle before you trade it. But once you have a full understanding on these Brazil ETFs, you can consider adding them to your portfolio.
And for those who do have an interest in BRIC ETFs, we have a short list for you to research:
- BKF - iShares MSCI BRIC Index ETF
- EEB - Claymore/BNY Mellon BRIC ETF
- EWBK - Rydex Russell BRIC Equal Weight ETF
And there are even funds that target Latin America that include Brazil as well:
Latin America ETFs
- BONO - Market Vectors LatAm Aggregate Bond ETF
- GML - SPDR S&P Emerging Latin America ETF
- FLN - First Trust Latin America AlphaDex Fund
- ILF - iShares S&P Latin America 40 Index ETF
- LARE - Tierra XP Latin America Real Estate ETF
- LBJ - Direxion Daily Latin America 3x Bull Shares ETF