EWZ is the ETF of Brazil's past. It's a story we've seen all over the globe: resource-rich nations that fail to transition to a diversified economy. If Brazil fails again, as it did in the 1980s following the '70s resource boom, then EWZ should outperform. But if it succeeds, BRF will be the fund to own. It is the fund of the future for the country of the future.

Since I picked BRF in July, the fund is up 49.5%. Over the same period, EWZ gained 38.7%, and Wisdom Tree Dreyfus Brazilian Real ( BZF) added 14.2%.On July 13, I named Market Vectors Brazil Small Cap ETF ( BRF) as the best of the Brazil ETFs. I followed up twice this week, as news of the Olympics and the big Santander IPO have drawn the world's attention to Brazil.

BRF is the best way to play these events because its holdings are positioned to benefit. Longer term, BRF is the ETF for a rising Brazil, whereas iShares Brazil's ( EWZ) commodity and energy heavy holdings will do well in a commodity boom, even if the broader Brazilian economy underperforms.

EWZ is the ETF of Brazil's past. It's a story we've seen all over the globe: resource-rich nations that fail to transition to a diversified economy. If Brazil fails again, as it did in the 1980s following the '70s resource boom, then EWZ should outperform. But if it succeeds, BRF will be the fund to own. It is the fund of the future for the country of the future.

Since I picked BRF in July, the fund is up 49.5%. Over the same period, EWZ gained 38.7%, and Wisdom Tree Dreyfus Brazilian Real ( BZF) added 14.2%.
Don Dion is president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.

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