Will BRIC small-caps prevail in 2013?
Wrapping up 2012 it’s worthwhile comparing the performance of four emerging market small cap exchange traded funds with a diversified BRIC ETF.
Welcome, Guest |
Login |
Wrapping up 2012 it’s worthwhile comparing the performance of four emerging market small cap exchange traded funds with a diversified BRIC ETF.
In July Emerging Money reviewed the Market Vectors Brazil Small Cap ETF (BRF, quote). We suggested the time might be right to revisit the fund and dip a toe back in.
The Bovespa Index is the flagship index of the Brazilian stock exchange, known by its acronym, BM&FBOVESPA. The index includes 68 of the 370 companies listed on the exchange, which represent roughly 70% of the exchange’s total capitalization and 80% of its trades. The Bovespa is calculated in reference to prices on February 1, 1968.
As the London Olympics conclude debate rages as to the economic benefit the city will enjoy. The government claims the Games will provide £13 billion in positive economic fallout over the next couple of years. If this number is achieved, having the Games will have more than paid for itself.
Brazil’s Bovespa is among many markets that have recently taken a beating, after reaching an intrayear high in the first quarter. Now with surprising economic reports stateside this week, including better than expected employment, housing, and consumer confidence measures; are Bovespa stocks a bargain?
While the Brazilian economy sure is facing some near-term headwinds, the long-term outlook is good. Given the pounding some Brazilian investments have taken you might think the country is a disaster. It may be time to revisit one such ETF: BRF.
On Wednesday last week, the central bank monetary policy committee (Copom) decided once again to cut the Brazil interest rate, continuing its easing cycle to counter softening demand from Europe and lower inflationary pressures.
Brazil’s policy of weakening its currency to make exports more competitive has worked – maybe too well.