How to invest in Brazilian Stocks, ETF, and Mutual Funds
Investing in Brazil has become very easy of the last few years. With the advent of electronic trading platforms, and with the rise of ETF's and other market index funds, investing in specific regions has become as easy as selecting the stock and purchasing in your online account. With the low fee many online brokerages charge, it is easy to actually profit from your investments in these developing countries. This eHow specifically mentions how to get invested in Brazilian stock and other Brazilian financial instruments.
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Instructions
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One way to get invested in Brazilian stocks is to buy the ADR shares on the US exchanges. There are many quality companies that are listed that pay dividends and have growth potential as the developing nation of Brazil continues its economic expansion. One such company that is listed on the US exchanges is: UGP Ultrapar holdings. It distributes liquefied petroleum gas. It pays a healthy dividend and has good cash flow. In the resources section I have linked to a list of Brazilian ADR's. *
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A second way to invest in Brazil is through an extremely innovative product created by ever bank. It has a BRIC CD that is FDIC insured, and has no downside potential. After 3 years it will pay out the principal and any earnings associated with the currency gains in the 4 developing nations. If there is no gain or negative gains, Everbank will still pay your principal back in full. Each country is represented by 25% of the value of the CD. A link to the page is listed in the resources section. **
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A third way to invest in Brazil is through exchange traded funds. Barclays has an ETF designed to track Brazilians stocks. The ETF trades under the symbol EWZ. There are others as well. Perform a Google search or brokerage account search to find more and find the prospectuses on additional Brazilian ETF's.
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A fourth way to invest in Brazilian stocks is to buy a managed mutual fund. This way required less research on the part of the investor. A management team will oversee the fund and select investments that are likely to pay off. I have linked to a mutual fund of Brazilian investments as well in the resources section.
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Tips & Warnings
When selecting ETF's that are not managed and simply track an index, don't pay excess management fees. Look for funds that have low fees associated with them. The fees can be found in the prospectus that must be offered.
International stocks sometimes have high volatility. Only place money into Brazilian investments or other international investments that you are not afraid to lose. Political and economic situations can quickly erode profits. However the reward can be substantial, in exchange for the increased risk.
Resources
- Photo Credit wikimedia commons: http://commons.wikimedia.org/wiki/File:Flag_of_Brazil.svg
