ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Emerging Markets Channel
  2. Brazil Internet Opportunity Knocks With FMQQ
Emerging Markets Channel
Share

Brazil Internet Opportunity Knocks With FMQQ

Tom LydonMay 06, 2022
2022-05-06

Previously beloved domestic and Chinese e-commerce and online retail equities are, broadly speaking, out of favor with investors this year.

With the U.S. and China being the dominant investable countries in the e-commerce landscape, it’s understandable that some investors are glossing over related opportunities in other regions. However, e-commerce opportunity may be beckoning in markets such as Brazil.

Investors looking to tap into Brazil’s online retail opportunity set in a non-dedicated fashion may want to consider the Next Frontier Internet & Ecommerce ETF (FMQQ B).

Brazil is Latin America’s largest economy and one of the best-performing emerging markets this year due in large part to soaring commodities prices. That’s a theme traditional large-cap Brazil indexes and ETFs are tethered to. Conversely, many old guard Brazil ETFs aren’t adequately exposed to the country’s status as a rising star on the e-commerce/online retail stage. Goldman Sachs is bullish on Brazilian stocks, including some e-commerce names.

“Brazil’s strong showing this year comes as investors bet that Latin America could fill a global commodities void left by Russia due to the war against Ukraine. Stock valuations in the region are also at record lows after years of lagging the rest of the world,” reports Fred Imbert for CNBC.

One of the Brazilian stocks Goldman is constructive on is the eCommerce platform Vtex. Citing rising revenue forecasts and robust margins, Vtex is Goldman’s “main Brazil [technology, media, and telecom] pick for an inflationary scenario” and “combines switching costs and a leading product with attractive valuation and a major global-expansion optionality.”

There may be value in Vtex as the stock has almost been halved this year. Goldman is also bullish on educational services provider Arco Platform. That company “combines a defensive profile, improving results, and an attractive valuation,” said the bank.

Both Arco Platform and Vtex are smaller members of the FMQQ portfolio. Nonetheless, the ETF is relevant in the Brazil consumer internet/growth stock conversation because many of the fund’s Brazilian holdings are hard to find traditional ETFs tracking the country. Additionally, FMQQ allocates 18.34% of its weight to Brazilian stocks. Said another way, FMQQ’s Brazil weight is more than triple what the MSCI Emerging Markets Index allocates to the country.

For more news, information, and strategy, visit our Emerging Markets Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X