Global X Launches ‘Well-Diversified’ Brazil Financials ETF
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Fresh off the successful launch of their Lithium Fund (LIT), Global X unveiled the newest addition to its lineup yesterday, the Brazil Financials ETF (BRAF). This fund makes 14 ETFs in total for the New York City based issuer which has a heavy focus on international funds including China sector ETFs and a fund tracking equities in Colombia. The fund is also the third a series of Brazilian ETFs from the company, coming after earlier launches in the consumer sector (BRAQ) and a Mid Cap ETF (BRAZ). These funds offer exposure to the dynamic Brazilian economy which is currently a $2 trillion force which is poised to double by 2018 and eventually surpass Britain and France to become the fifth largest economy in the world.
Due to these trends, Brazil makes for an interesting choice for investors seeking exposure to financials in Latin America and emerging markets in general. Although greatly troubled in the past, the country has become an economic powerhouse under the direction of President Luiz Inácio Lula da Silva who oversaw high growth levels and moderating inflation throughout most of his tenure. However, the real catalyst for Brazil’s rise in finance came in 1995 when the government revolutionized its financial system under the Proper Restructuring Program.
