The iShares MSCI Brazil (EWZ) is one of the best-selling ETFs this month as hedge funds continue to bet on the emerging market country and its economic growth.
In October, EWZ has gathered $679 million of inflows, according to IndexUniverse ETF data.
Brazil’s unemployment rate rose slightly in September despite a pick up in hiring as more people started looking for jobs, Reuters reports.
“High employment and elevated wages should help spur private sector consumption,” said Gustavo Arruda, economist at BNP Paribas.
EWZ is designed to track the world’s sixth largest economy and home to the upcoming 2014 World Cup and 2016 Summer Olympics. The Brazil ETF has seen persistent inflows this year and the country recently announced a stimulus package to jumpstart the economy, improve infrastructure and promote investment.
Brazil’s national development bank will start buying local infrastructure bonds from companies next year as the government steps up efforts to improve the transport system, Bloomberg News reports.
Shares of Brazilian mining company Vale (VALE) rose Thursday after the company said it plans to cut costs and sell some assets, although it reported disappointing quarterly earnings earlier this week.
Vale is the second-largest holding in EWZ at 7.6% of the portfolio.
Some highly-respected investors and hedge fund managers say Brazil is their favorite choice in emerging markets. [Smart Money Bets on Brazil]
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