Is It Time to Buy iShares MSCI Brazil Index ETF (EWZ)?
As the seventh-largest economy in the world, Brazil is a target destination for a number of investors looking to broaden their exposure to international markets. Brazil represents a rare opportunity for investors in that is both rich in natural resources and relatively industrialized. The blend of emerging market infrastructure build-out and industrial specialization has been the driving force that has caused investors to flock to the iShares MSCI Brazil Index ETF(NYSEMKT: EWZ) .
Between October 2002 and May 2008, the iShares MSCI Brazil Index gained an eye-popping 1,500% for investors. Since then, however, it has been a bit of a struggle.
EWZ data by YCharts.
This begs the question: Is the iShares MSCI Brazil Index an ETF worth buying right now? Today I aim to answer this question.
However, before we dive right into the basics of this Brazil-focused ETF, it’s worth noting that the stock market is a dynamic place with investors on both sides of a trade. Funds like the iShares MSCI Brazil Index can go up just as easily as they can go down. In short, just because I’m making a call on whether this fund is a buy or not today doesn’t mean that I’ll be correct, so make sure you formulate your own opinions on this fund as you read on.
A brief overview of the iShares MSCI Brazil Index As you’ve astutely surmised by now, the funds’ objective is to give investors exposure to Brazil’s stock market through a mix of mid- and large-cap companies. With $5.45 billion in assets under management, the fund currently has 74 separate holdings in its portfolio. As you can see below, the weighting is dominated by financials, with consumer staples, energy, and materials also occupying a double-digit percentage of the pie.