How to invest in Brazil using ETFs

How do I invest in Brazilian stocks?

The easiest way to invest in the whole Brazilian stock market is to invest in a broad market index. This can be done at low cost by using ETFs.

On the Brazilian stock market you find 2 indices, which are tracked by ETFs.

Alternatively, you may consider investing in the Latin American stock markets or the BRIC countries. Whereas Brazil is strongly weighted with almost 60% in the MSCI Emerging Markets Latin America Index, it is weighted with less than 25% in BRIC indices.

0.55% p.a. - 0.74% p.a.
annual total expense ratio (TER) of Brazil ETFs
on the Brazilian stock market, which is tracked by ETFs
on the Brazilian stock market
The best indices for Brazil ETFs

Performance of Brazilian stocks (MSCI Brazil)

1 month: -8.84%
1 year: 44.39%
3 years: -0.56%
5 years: -22.65%

Indices in comparison

The best indices for ETFs on Brazil

For an investment in the Brazilian stock market, 2 indices tracked by 6 ETFs are available. On the BOVESPA index there is 1 ETF. On the MSCI Brazil index there are 5 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.55% p.a. and 0.74% p.a..

Index Investment focus Number of ETFs Number of constituents Short description

BOVESPA

Brazil 1 ETF 58
(15/11/16)
The BOVESPA Index tracks the Brazilian stock market in Sao Paulo. It is the largest stock exchange in Latin America that accounts for some 75% of the volume of shares traded in the region.
Index factsheet

MSCI Brazil

Brazil 5 ETFs 60
(31/10/16)
The MSCI Brazil index tracks the largest and most liquid Brazilian stocks.
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI Brazil UCITS ETF (Dist)IE00B0M63516 256 0.74% p.a. Distributing Ireland Full replication
Lyxor Brazil (IBOVESPA) UCITS ETF C-EURFR0010408799 204 0.65% p.a. Accumulating France Unfunded swap
db x-trackers MSCI Brazil Index UCITS ETF (DR) 1CLU0292109344 87 0.65% p.a. Accumulating Luxembourg Full replication
Amundi ETF MSCI Brazil UCITS ETFFR0010821793 47 0.55% p.a. Accumulating France Unfunded swap
iShares MSCI Brazil UCITS ETF (Acc)IE00B59L7C92 19 0.65% p.a. Accumulating Ireland Full replication
HSBC MSCI Brazil UCITS ETF USDDE000A1C22N1 11 0.60% p.a. Distributing Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Brazil -7.77% 5.95% 37.91% 52.93% -1.79%
BOVESPA -7.00% 6.80% 40.47% 56.75% 1.30%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI Brazil 66.47% -34.42% -2.58% -19.91% -2.58%
BOVESPA 72.39% -36.39% -4.90% -29.30% -6.18%

Source: justETF.com; As of 30/11/16; Calculations in EUR based on the largest ETF of the respective index.

 
Alternative investment opportunities

Latin American indices with a large share of Brazil

Besides Brazilian ETFs, there are a number of ETFs on the Latin American stock markets with Brazil exposure. In total, you can invest in 2 Latin American indices tracked by 7 ETFs. The MSCI Emerging Markets Latin America indices contain 58.72% Brazil (as of 31/10/2016). The total expense ratio (TER) of ETFs on Latin America is between 0.20% p.a. and 0.74% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
MSCI Emerging Markets Latin America Latin America
Brazil: 58.72%
(31/10/2016)
6 ETFs 119
(31/10/16)
The MSCI Emerging Markets Latin America index tracks the equity markets of emerging markets in Latin America.
Index factsheet
MSCI Emerging Markets Latin America 10/40 Latin America
Brazil: 58.72%
(31/10/2016)
1 ETF 119
(31/10/16)
The MSCI Emerging Markets Latin America 10/40 index tracks the equity markets of emerging markets in Latin America. The imbedded 10/40 rule limits the weight of a single company to 10% of the index. The sum of all companies with weights between 5% and 10% is limited to 40%.
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI EM Latin America UCITS ETF (Dist)IE00B27YCK28 369 0.74% p.a. Distributing Ireland Optimized sampling
Amundi ETF MSCI EM Latin America UCITS ETF EURFR0011020973 189 0.20% p.a. Accumulating France Unfunded swap
Lyxor UCITS ETF MSCI EM Latin America C-EURFR0010410266 121 0.65% p.a. Accumulating France Unfunded swap
db x-trackers MSCI EM Latin America Index UCITS ETF 1CLU0292108619 112 0.65% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI EM Latin America UCITS ETF USDIE00B4TS3815 13 0.60% p.a. Distributing Ireland Full replication
HSBC MSCI EM Latin America UCITS ETF USDDE000A1JF7T3 13 0.60% p.a. Distributing Ireland Full replication
SPDR MSCI EM Latin America UCITS ETFIE00B454X613 4 0.55% p.a. Accumulating Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Emerging Markets Latin America 10/40 -7.75% 1.62% 18.34% 22.49% -4.18%
MSCI Emerging Markets Latin America -7.66% 1.94% 19.75% 23.45% -3.02%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI Emerging Markets Latin America 32.65% -23.42% -0.96% -17.55% 6.08%
MSCI Emerging Markets Latin America 10/40 32.87% -23.24% -0.93% -18.00% 5.55%

Source: justETF.com; As of 30/11/16; Calculations in EUR based on the largest ETF of the respective index.

 

Regional indices on Brazil, Russia, India and China (BRIC)

Besides Latin America ETFs indices you may invest in indices on BRIC countries. In total, you can invest in 2 BRIC indices tracked by 2 ETFs. In the BRIC indices Brazil is weighted with less than 25%. The total expense ratio (TER) of ETFs on BRIC countries is between 0.65% p.a. and 0.74% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
DAXglobal® BRIC Emerging Markets
Brazil: 21.00%
(31/10/2016)
1 ETF 40
The DAXglobal® BRIC (total return) index tracks the 40 largest and most liquid stocks of the BRIC countries (Brazil, Russia, India, China).
Index factsheet
FTSE BRIC 50 Emerging Markets
Brazil: 16.66%
(31/10/2016)
1 ETF 50
The FTSE BRIC 50 index tracks the 50 largest stocks of the BRIC countries (Brazil, Russia, India, China).
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares BRIC 50 UCITS ETFIE00B1W57M07 251 0.74% p.a. Distributing Ireland Full replication
RBS Market Access DAXglobal BRIC UCITS ETFLU0269999792 16 0.65% p.a. Accumulating Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE BRIC 50 0.30% 3.39% 18.29% 11.71% 21.68%
DAXglobal® BRIC 0.61% 3.32% 16.70% 12.96% 16.56%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
FTSE BRIC 50 18.85% -1.73% 9.04% -7.58% 9.47%
DAXglobal® BRIC 22.08% -4.13% 3.23% -10.51% 10.27%

Source: justETF.com; As of 30/11/16; Calculations in EUR based on the largest ETF of the respective index.