Brazil is the seventh largest economy in the world, and is gaining ground on the developed countries. The country is a major exporter of natural resources like oil, iron ore and agriculture.
To get exposure to Brazil, I like the big integrated oil & gas producer, Petroleo Brasileiro (Sym: PBR). At 26.46 the stock is trading very cheaply, especially with oil prices at elevated levels. I also like the major iron ore and mining company, Vale (Sym: VALE). At 23.39, it’s trading at an extremely cheap valuation.
Another option is taking a position in the iShares Brazil index fund ETF (Sym: EWZ). This ETF is weighted over 30% in VALE and PBR alone. Also, in the last 12 months, it has returned over 6% in dividend distributions to shareholders. (Note, dividend amounts and dates are not consistent.)
EWZ recently closed at 59.92…
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