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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Don Dion's Weekly ETF Blog Wrap

Stocks in this article: UNL EWZ EWY

Oil Discovery Makes Brazil ETF Look Attractive

Posted 12/09/2009 11:18 a.m. EST

A big oil discovery could lift the largest holding in iShares MSCI Brazil (EWZ).

Petrobras (PBR) has completed testing on the Lara oil field, and findings show that the massive field off Rio de Janeiro has the capability to produce between 3 billion and 4 billion barrels of oil. This discovery further strengthens the nation's chances of becoming a major oil exporter.

The Lara oil field is just one of the offshore reserves the Brazilian firm has been focusing on. In 2007, Lara's sister field Tupi was found to hold between 5 billion and 8 billion barrels of oil.

Petrobras is EWZ's top holding, making up more than 22% of the fund's total portfolio. Besides Petrobras, EWZ's performance is heavily reliant on the growth of its energy and materials industries, which together account for nearly 55% of the fund. Other top holdings include Vale (VALE) and Gerdau (GGB).

While the outlook appears bright, I advise investors looking to include the EWZ in their portfolio to follow my lead and keep exposure small. Year to date for the period ended Dec. 8, EWZ has gained more than 117%. The fund's standout performance and strong momentum led me to include it in my ETF Action portfolio, and I remain bullish on the instrument heading into the end of the year, but with nearly a quarter of the fund dedicated to a single firm (along with other industry concentration), this fund will be susceptible to energy- and commodity-driven swings.

>>See our new stock quote page.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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