Investing in Brazil

• Brazil is rich in a wide variety of natural resources and in a unique position to thrive as a supplier of raw materials to the emerging world
• Brazil is hosting soccer's World Cup in 2014 and the Olympics in 2016 -- two events that require a functional infrastructure. 
• Brazil’s clean energy revolution has been a largely overlooked accomplishment.
• Outgoing president Luiz Inácio Lula da Silva has an 80% approval rating at the end of his second term

*click on the symbol to view the fund's chart & profile on Yahoo Finance (opens a new window)

Exchange Traded Funds (ETFs)
Symbol (*)	Name	Fund Family	Investment Objective	Ave Daily Volume
EWZ	iShares MSCI Brazil Index	iShares	Brazil	15,533,200
BRF	Market Vectors Brazil Small-Cap ETF	Van Eck	Brazil Small-Cap	305,342
BZQ	UltraShort MSCI Brazil	ProShares	Brazil, 2x short	162,567
ILF	iShares S&P Latin America 40 Index	iShares	5 Latin American countries (Brazil, Mexico, Chile, Peru)	2,141,630
EEB	Claymore/BNY Mellon BRIC ETF	Claymore Securities	Brazil, Russia, India and China	217,705
BKF	iShares MSCI BRIC Index	iShares	Brazil, Russia, India and China	135,134
BRXX	Brazil Infrastructure	Emerging Global Shares	Brazil Infrastructure	26,209
BRAZ	Brazil Mid Cap	Global X	Brazil Mid Cap	31,510
BRAQ	Brazil Consumer	Global X	Brazil Consumer	20,934
BRAF	Brazil Financials	Global X	Brazil Financials	12,219
UBR	Ultra MSCI Brazil Fund	ProShares	2x MSCI Brazil Index	12,723
BZQ	UltraShort MSCI Brazil	ProShares	2x short MSCI Brazil Index	156,637
BZF	Brazilian Real	WisdomTree	Brazilian Real (currency)	107,266
Brazilian companies listed on US exchanges
Company	Symbol (*)	Sector / Industry	Market Cap (mln $)	Ave Daily Volume
Vale	VALE	Steel & Iron	148.91B	26,526,500
Itaú Unibanco	ITUB	Banking	97.03B	16,025,400
Petroleo Brasileiro	PBR	Energy	87.31B	14,010,900
Banco Bradesco	BBD	Banking	71.90B	9,118,400
Companhia Siderurgica Nacional	SID	Steel & Iron	23.84B	5,271,070
Gerdau	GGB	Steel & Iron	19.63B	6,453,970
Companhia de Bebidas Das Americas (AMBEV)	ABV	Food and Beverage	29.82B	713,025
Centrais Electricas Brasileiras	EBR	Electric Utilities	14.62B	701,781
Companhia Paranaense de Energia	ELP	Electric Utilities	6.25B	553,166
Companhia Brasileira de Distribuicao	CBD	Retail - Grocery stores	8.67B	389,206
CPFL Energia	CPL	Electric Utilities	11.31B	150,843
American companies with a presence in Brazil
Company	Symbol	Sector	Market Cap ($)	Ave Daily Volume

Brazil’s clean energy revolution has been a largely overlooked accomplishment. Renewable energy accounts for more than 85% of domestically-produced energy, and many of the cars on the road run on sugarcane ethanol. In recent years the country has moved into wind power initiatives as well, looking to reduce the heavy reliance on hydroelectric power.

Brahma (brewing and beverages which through a series of acquisitions created Anheuser Busch InBev), Embraer (aircraft production), Votorantim (diversified conglomerate specializing in basic industries), Banco Itaú (banking), Natura (cosmetics), América Latina Logística (logistics), Promon (engineering), Sabó (auto parts), Pão de Açúcar (food retailing), and Aracruz (pulp and paper).

Embraer is the fourth largest aircraft manufacturer in the world, with over twelve thousand employees and $5.5 billion revenues in 2009. By the end of the 1990’s, the company had emerged as one of Brazil’s largest exporters. Over the 1990’s, Embraer won a 40% share of the global market for regional jets, while the market leader Bombardier lost nearly half of its market share over the same period, and number three Fairchild Dornier filed for bankruptcy.

While Brazil maintains strong growth prospects, the economy faces some unique challenges as the central bank takes steps to prevent overheating. Brazil has had challenges with inflation in the past, experiencing hyperinflation in 1994 when the consumer price index exceeded 5,000%.

 

The Economist November 2009 (4 years ago)
The Economist September 28th – October 4th 2013; Latin America and Asia: Has Brazil blown it?

 

The Economist; 10/16/14 and Jan 2016

26 March 2016

Brazil's collapsing GDP growth:

• 2010: 7.6%
• 2011: 3.9%
• 2012: 1.7%
• 2013: 2.7%
• 2014: 0.1%
• 2015: -3.1%
• 2016: -3.2% 

EWZ 2014-03 monthly (click for live EWZ chart)

EWZ 2013-09 monthly - 6 months earlier

In the 2000s Brazil’s economy was taking off. It barely faltered during the global economic crisis; in 2010 it grew by 7.5%. Yet recently it has stalled. Since 2011 Brazil has managed just 2% annual growth. Its citizens are disgruntled - in June they took to the streets to protest against high living costs, poor public services and the greed and corruption of politicians. Can Dilma Rousseff, Brazil’s president, restart the engines? Will the World Cup and the Olympic games aid Brazil’s recovery, or simply bring more debt?

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The Economist, Jan 2, 2016
Irredeemable? A former star of the emerging world faces a lost decade
http://www.economist.com/news/briefing/21684778-former-star-emerging-world-faces-lost-decade-irredeemable