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 1 index, which is 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 15% 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: -12.94%
1 year: 30.84%
3 years: 36.44%
5 years: 19.18%

Indices in comparison

The best indices for ETFs on Brazil

For an investment in the Brazilian stock market, 1 index tracked by 6 ETFs are available. On the MSCI Brazil index there are 6 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

MSCI Brazil

Brazil 6 ETFs 52
(31/03/19)
The MSCI Brazil index tracks the largest and most liquid Brazilian stocks.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI Brazil UCITS ETF (Dist)IE00B0M63516 341 0.74% p.a. Distributing Ireland Full replication
Lyxor MSCI Brazil UCITS ETF AccLU1900066207 152 0.65% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI Brazil Index UCITS ETF 1CLU0292109344 91 0.65% p.a. Accumulating Luxembourg Full replication
HSBC MSCI Brazil UCITS ETF USDIE00B5W34K94 29 0.60% p.a. Distributing Ireland Full replication
iShares MSCI Brazil UCITS ETF (Acc)IE00B59L7C92 28 0.65% p.a. Accumulating Ireland Full replication
Amundi MSCI Brazil UCITS ETF - USD (C)LU1437024992 11 0.55% p.a. Accumulating Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Brazil 6.84% 17.86% 8.00% 36.23% 58.63%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
MSCI Brazil 23.89% 3.86% 12.12% 97.89% -38.80%

Source: justETF.com; As of 31/07/19; Calculations in GBP based on the largest ETF of the respective index.

 

The cheapest Brazil ETFs
by total expense ratio (TER)

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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 5 ETFs. The MSCI Emerging Markets Latin America indices contain 61.26% Brazil (as of 31/03/2019). 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: 61.26%
(31/03/2019)
4 ETFs 107
(31/03/19)
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: 60.86%
(31/03/2019)
1 ETF 108
(31/03/19)
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 GBP
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI EM Latin America UCITS ETF (Dist)IE00B27YCK28 262 0.74% p.a. Distributing Ireland Optimized sampling
Xtrackers MSCI EM Latin America Index Swap UCITS ETF 1CLU0292108619 68 0.65% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI EM Latin America UCITS ETF AccLU1900066629 52 0.65% p.a. Accumulating Luxembourg Unfunded swap
Amundi ETF MSCI Emerging Markets Latin America UCITS ETF - USDLU1681045297 48 0.20% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI EM Latin America UCITS ETF USDIE00B4TS3815 13 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 Emerging Markets Latin America 10/40 4.38% 10.97% 5.53% 16.29% 36.75%
MSCI Emerging Markets Latin America 4.36% 11.08% 5.38% 16.49% 36.25%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
MSCI Emerging Markets Latin America 16.93% -0.93% 11.61% 56.69% -28.06%
MSCI Emerging Markets Latin America 10/40 18.17% -2.08% 12.02% 56.69% -28.09%

Source: justETF.com; As of 31/07/19; Calculations in GBP 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 1 BRIC index tracked by 1 ETF. In the BRIC indices Brazil is weighted with less than 15%. The total expense ratio (TER) of ETFs on BRIC countries is around 0.74% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSE BRIC 50 Emerging Markets
Brazil: 14.76%
(31/03/2019)
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 GBP
TER
in %
Use of profits Fund domicile Replication method
iShares BRIC 50 UCITS ETFIE00B1W57M07 204 0.74% p.a. Distributing Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE BRIC 50 3.19% 4.03% 8.86% 12.32% 56.98%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
FTSE BRIC 50 17.67% -3.63% 23.98% 39.62% -7.59%

Source: justETF.com; As of 31/07/19; Calculations in GBP based on the largest ETF of the respective index.