New-York based Global X Management has released its Brazil Mid Cap ETF on NYSE Arca.
The firm claims this is the first ETF to offer investors targeted access to domestic Brazilian enterprises that are experiencing rapid growth.
The fund, which has a total expense ratio of 0.69%, comprises 40 companies with market capitalization in the range of two billion dollars to $10bn, including names such as the mobile technology company Tele Norte Leste.
The underlying Solactive Brazil Mid Cap index is weighted by free float market capitalization, with the top three components consisting of CPFL Energia SA, Cia Energetica de Minas Gerais, and All America Latina Logistica.
Global X says this kind of investment exposure is sparsely represented as an ETF underlying. In comparison, the Brazil ETFs available may overweight mega-cap companies, especially those involved in natural resources and more global operations.
Brazil is the largest Latin American country by gross domestic product (GDP), which stands at $1.976trn, representing the ninth highest GDP in the world, according to Global X.
Goldman Sachs notes in December 2009: "The major mover in the BRICs this year was Brazil. Not only was it one of the 25 best performers globally, but it is now the highest-placed BRIC in the Growth Environment Score (GES) ranking."
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