Brazil, the country of soccer
Brazil, “the country of soccer,” is the fifth largest country, with 2.83% of the world’s population. With a population of 202.72 million, Brazil is the biggest economy in Latin America and the seventh biggest in the world by nominal gross domestic product (IMF, 2013). There are several reasons why Brazil has been an attractive avenue among the investing community.
Seven key reasons to invest in Brazil
Considering the above qualities, several exchange-traded funds (or ETFs) have invested in Brazil. These include the iShares MSCI Brazil Capped (EWZ), which measures broad-based equity market performance in Brazil and has holdings in top companies like Itau Unibanco Holding S.A (ITUB), Ambev SA (ABEV), and Petroleo Brasileiro SA Petrobras (PBR), and the Global X Brazil Consumer ETF (BRAQ), which tracks the performance of the consumer sector in Brazil by investing in companies like Lojas Americanas.
Investing in Brazil requires caution
The next part of this series discusses some of the key things to keep in mind when deciding whether to invest in Brazil. Though Brazil has had one of the world’s fastest growth rates over the past decade, it’s also exposed to high inflation. This high inflation has led the central bank in Brazil to hike interest rates several times. Moreover, the country’s credit rating was cut by Standard & Poor’s to one notch above junk in March.
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