How to Invest in Brazil With ETFs

Brazilian flag and Corcovado
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For investors who want exposure to Brazil in their portfolio, there are a few opportunities. You can consider some emerging market ETFs that include Brazilian companies in their holdings, like the Invesco BLDRS Emerging Markets 50 ADR Index Fund ETF (ADRE).

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 Brazil, Russia, India, and China in its holdings, like iShares MSCI BRIC ETF (BKF).

But if you want to invest in a Brazil asset by itself, then you might want to consider these country-specific ETFs that focus on Brazil only.

Key Takeaways

  • To invest in Brazil with ETFs, you can buy emerging market ETFs, currency ETFs, BRIC ETFs, or ETFs that focus on Brazil only.
  • Brazil ETFs include VanEck Vectors Brazil Small-Cap ETF (BRF), Direxion Daily Brazil Bull 2X Shares ETF (BRZU), and ProShares UltraShort MSCI Brazil ETF (BZQ).
  • You may come across closed ETFs in your research. Be aware that funds like BRAQ, BRAZ, and BRAF are no longer trading.
  • As with any investment, make sure you analyze these exchange-traded funds or any financial assets before making any trades (long or short).

List of Brazil ETFs

  • BRF - VanEck Vectors Brazil Small-Cap ETF
  • BRZU - Direxion Daily Brazil Bull 2X 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
  • FBZ - First Trust Brazil AlphaDEX Fund
  • FLBR - Franklin FTSE Brazil ETF

While these are the current Brazil ETFs on the market as of 2021, we have lost some funds over the years for various reasons. If you come across either of these funds in your research, be aware that they are no longer trading on any exchanges as of March 2021:

Closed Brazil ETFs

  • BRAF - Global X Brazil Financials ETF
  • BRAQ - Global X Brazil Consumer ETF
  • BRAZ - Global X Brazil Mid Cap 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. However, it's not a simple as picking a fund 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 assets before making any trades (long or short). Watch how they react to different market conditions, and 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). 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.

For those who do have an interest in BRIC ETFs, research iShares MSCI BRIC Index ETF (BKF).

There are even funds that target Latin America that include Brazil:

Latin America ETFs

  • EMB - iShares J.P. Morgan USD Emerging Markets Bond ETF
  • FLLA - Franklin FTSE Latin America ETF
  • FLN - First Trust Latin America AlphaDex Fund
  • ILF - iShares Latin America 40 ETF
  • LBJ - Direxion Daily Latin America 2x Bull Shares ETF