BRIC Alert: Brazilian Consumer ETF Coming (BRAQ, ABV, BRFS, GFA)

July 6, 2010 by Jon C. Ogg

We are about to get a new ETF this week for investors who love chasing the BRIC trends for Brazil, Russia, India, and China.  The Global X Brazil Consumer ETF (NYSE: BRAQ) is set to launch this Thursday.  At the launch, the top 13 holdings will have a weighting of about 4.75% each.  Some of the big stocks that have ADRs trading here in America which are part of the index are as follows: Companhia de Bebidas Das Americas (AMBEV) (NYSE: ABV), BRF – Brasil Foods S.A. (NYSE: BRFS), and Gafisa S.A. (NYSE: GFA).  There are others of course, and some of the securities listed as part of the index do seem to be preferred shares rather than just the common shares.

The Brazil Consumer ETF seeks to provide investment results that correspond to the price and yield performance of the Solactive Brazil Consumer Index.  The index is modeled to reflect the performance of the rapidly growing consumer sector in Brazil.

The index is made up of company securities which have their main business operations in the consumer sector AND which are domiciled in Brazil or which have their main business operations in Brazil.

JON C. OGG