Rio de Janeiro has been awarded the 2016 Summer Olympics by the International Olympic Committee. After attempting, and failing, to acquire the Olympics in 1936, 1940, 2004, and 2012, Rio has finally broken through as an Olympic city, beating out Madrid, Tokyo, and Chicago. Brazil was the only emerging market among the four finalist cities, and its selection may give a boost to several ETFs, including:
- iShares MSCI Brazil Index Fund (EWZ): EWZ invests in approximately 30 companies, and has significant allocations to the materials and energy sectors. EWZ has been one of the top-performing equity ETFs this year, already gaining nearly 90% in 2009.
- Market Vectors Brazil Small Cap ETF (BRF): While other Brazil ETFs are concentrated heavily in large cap companies, BRF invests exclusively in small cap firms, meaning that this ETF is not dominated by commodities and materials companies, but rather offers exposure to the “real Brazil,” including home building and consumer goods firms.