This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

An ETF Bet for Brazil's Olympics

NEW YORK ( TheStreet) -- Rio de Janeiro's successful bid to host the 2016 Olympic Games underscores the tremendous progress that Brazil has made in recent years, both politically and economically.

Despite a hard hit in 2008, Brazil's equity market has improved dramatically in recent months, in a trend that has been tracked by both iShares Brazil (EWZ) and Market Vectors Brazil Small-Cap ETF (BRF). For the three-month period ending Oct. 1, BRF jumped 38.01%, while EWZ rose 23.14%.

As the country gears up for the Olympic Games, investors should consider adding exposure to this growing marketplace through one of these popular ETFs. (See the Ultimate Guide to Brazil ETFs.)

Emerging market companies are excellent ways to diversify your portfolio, but stock prices can be volatile. Both BRF and EWZ give investors access to a portfolio of Brazilian equities, helping to mitigate the security-specific risk of any specific stock.

While EWZ is the older and larger of the two Brazil-specific equity ETF funds, BRF may be the better bet as Rio de Janeiro prepares for 2016. Despite differences in fees and trading volume, BRF is the better fund for Olympic investing.

Commodities have driven the Brazilian economic boom, and commodity exports make up nearly 10% of output. An improved political climate and efforts to reform the financial system have also strengthened this emerging marketplace. As the country prepares for the Olympics, fundamental weaknesses will be addressed, and improvements in infrastructure and tourism could help to shift some of the pressure of Brazil's economic success off of the country's abundant natural resources.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BRF $16.15 0.00%
EWZ $31.09 0.00%
PBR $5.93 0.00%
VALE $5.79 0.00%
AAPL $126.37 0.00%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs