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Global X Unveils Brazil MidCap ETF
June 25, 2010
SAN DIEGO (ETFguide.com) – Global X Funds, a New York‐based provider of exchange-traded funds (ETFs), has just launched the Global X Brazil Mid Cap ETF (NYSEArca: BRAZ). The fund owns midcap stocks with market sizes between $2 to $10 billion that are domiciled in Brazil.
“Medium sized Brazilian enterprises offer access to on‐the‐ground, established businesses that reflect the Brazilian growth story, while staying above a minimum size to avoid excessive risk,” says Bruno del Ama, CEO of Global X Funds.
BRAZ is linked to the Solactive Brazil Mid Cap Index. The industry sector breakdown includes 20 percent utilities, 17 percent non‐cyclical consumer, 16 percent industrial, 15 percent financials, 14 percent basic materials, 9 percent cyclical consumer, and 9 percent communications.
Some of the 40 companies owned within BRAZ include cosmetics company Natura Cosmeticos, real estate firm Cyrela Brazil Realty, mobile tech company Tele Norte Leste, food distributor Hypermarcas, and materials firm Metalurgica Gerdau.
“Such companies are currently sparsely represented in existing exchange traded fund options, yet are poised to benefit the most from the country’s solid macro fundamentals. The Brazil Mid Cap ETF provides efficient and diversified access to these localized growth themes,” adds del Ama.
The largest U.S. listed Brazil ETF in terms of assets is the $2.8 billion iShares MSCI Brazil ETF (NYSEArca: EWZ). In 2009, EWZ gained 123.98 percent but through the middle of this year has given back around 10 percent. EWZ’s annual expense ratio is 0.65 percent.
In the coming months, Global X is planning to introduce a series of Brazilian industry sector ETFs.
According to the prospectus, BRAZ has a 0.69 percent expense ratio.
At the end of May, Global X had $213 million in U.S. listed ETF assets. |
