Boston, MA 10/01/2013 (wallstreetpr) – iShares MSCI Brazil Index (ETF) (NYSEARCA:EWZ) seeks investment of at least 95% of its assets in the securities and depositary receipts of its underlying MSCI Brazil 25/50 Index. The underlying index measures the performance of the Brazilian equity market by capture 85% of the total market capitalization. BlackRock Fund Advisors (BFA) serves as the investment adviser to this non-diversified Fund.
The figures and future of EWZ draws a lot of significance for investors than earlier. First, the fund has delivered more than 13% returns during past one month’s trade. The stock lost around 1.2% during previous week’s (Sep. 23 to Sep. 27).
Market analysts predict a bullish Brazilian market so; in reality things are not looking bad for the EWZ. And In this market, investors can benefit from prevalent cheaper stock. In the Brazilian stock market there are strong potentials, but outside the U.S. the stock market is not expecting the desired situations.
Like, in any other emerging market, EWZ is also suffering from the stronger US dollar. Another challenge for this market is the Brazilian government’s restrictive market policies.
The policies of the Brazilian government trace on improved regulation of the private sector, high taxes on foreign inflows and near limiting import tariffs. Along with this bad news for investors, according to analysts, there is also good news that yet it is not the right time to give up on the Brazilian market. Some long term benefits can easily emerge for the investors who hope beyond the current low stock prices and government interruption in Brazil.
Though Brazil is trailing its emerging market peers and is far behind the S&P 500 if one compares to year-to-date returns, it is not that one should leave hope on Brazilian Market or EWZ. Certain protective government policies like increasing taxes on foreign capital inflows, new import tariffs and stronger dollar has halted the growth of Brazilian market and yet with government being actively playing for domestic growth, low investor sentiment and lower stock prices – this rather seems to be an investment opportunity from a long-term perspective