How to invest in Brazil using ETFs
How do I invest in Brazilian stocks?
The easiest way to invest in the whole Brazilian stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the Brazilian stock market you'll find 2 indices which are tracked by ETFs.
Alternatively, you may consider investing in the Latin American stock market.
Performance of Brazilian stocks (MSCI Brazil)
Indices in comparison
The best indices for ETFs on Brazil
For an investment in the Brazilian stock market, there are 2 indices available which are tracked by 6 ETFs. On the FTSE Brazil 30/18 Capped index there is 1 ETF. On the MSCI Brazil index there are 5 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.19% p.a. and 0.74% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
FTSE Brazil 30/18 Capped | Brazil | 1 ETF | 89 (30.11.22) | The FTSE Brazil 30/18 Capped index tracks Brazilian companies with large and medium market capitalisation. The largest company in the index is limited to a maximum of 30 percent of the index capitalization, all other index components to a maximum of 18 percent. Index factsheet |
MSCI Brazil | Brazil | 5 ETFs | 52 (30.09.24) | The MSCI Brazil index tracks the largest and most liquid Brazilian stocks. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Brazil UCITS ETF (DE) USD (Acc)DE000A0Q4R85 | 2,430 | 0.31% p.a. | Accumulating | Germany | Full replication | |
| iShares MSCI Brazil UCITS ETF (Dist)IE00B0M63516 | 216 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Brazil UCITS ETF AccLU1900066207 | 176 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Brazil UCITS ETF 1CLU0292109344 | 67 | 0.25% p.a. | Accumulating | Luxembourg | Full replication | |
| Franklin FTSE Brazil UCITS ETFIE00BHZRQY00 | 31 | 0.19% p.a. | Accumulating | Ireland | Full replication | |
| Amundi MSCI Brazil UCITS ETF USD (C)LU1437024992 | 6 | 0.55% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Brazil | -2.86% | -0.65% | -9.08% | -2.21% | 35.21% | |
| FTSE Brazil 30/18 Capped | -4.82% | -1.33% | -9.13% | -1.74% | 33.52% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Brazil | -16.83% | 28.36% | 20.11% | -11.25% | -26.80% | |
| FTSE Brazil 30/18 Capped | -16.47% | 27.86% | 18.19% | -9.41% | -26.61% |
Source: justETF.com; As of 31.10.24; Calculations in EUR based on the largest ETF of the respective index.
The best Brazil ETFs
by 1 year return
| 1 | Franklin FTSE Brazil UCITS ETF | -1.74% |
| 2 | Xtrackers MSCI Brazil UCITS ETF 1C | -2.09% |
| 3 | iShares MSCI Brazil UCITS ETF (DE) USD (Acc) | -2.21% |
The cheapest Brazil ETFs
by total expense ratio (TER)
| 1 | Franklin FTSE Brazil UCITS ETF | 0.19% p.a. |
| 2 | Xtrackers MSCI Brazil UCITS ETF 1C | 0.25% p.a. |
| 3 | iShares MSCI Brazil UCITS ETF (DE) USD (Acc) | 0.31% p.a. |
Latin America indices with a large share of Brazil
Besides Brazilian ETFs, there are a number of ETFs on the Latin American stock markets with Brazil exposure. In total, you can invest in 2 Latin American indices tracked by 3 ETFs. The total expense ratio (TER) of ETFs on Latin America is around 0.20% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Emerging Markets Latin America | Latin America Brazil: 61.03% (30/11/2022) | 2 ETFs | 94 (30.09.24) | The MSCI Emerging Markets Latin America index tracks the equity markets of emerging markets in Latin America. Index factsheet |
| MSCI Emerging Markets Latin America 10/40 | Latin America Brazil: 58.97% (30/11/2022) | 1 ETF | 94 (30.09.24) | The MSCI Emerging Markets Latin America 10/40 index tracks the equity markets of emerging markets in Latin America. The imbedded 10/40 rule limits the weight of a single company to 10% of the index. The sum of all companies with weights between 5% and 10% is limited to 40%. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI EM Latin America UCITS ETF (Dist)IE00B27YCK28 | 317 | 0.20% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets Latin America UCITS ETF EUR (C)LU1681045024 | 189 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI Emerging Markets Latin America UCITS ETF USDLU1681045297 | 183 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Latin America 10/40 | -2.40% | -3.25% | -11.99% | -0.60% | 30.26% | |
| MSCI Emerging Markets Latin America | -2.47% | -2.87% | -11.84% | -0.49% | 30.46% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Latin America 10/40 | -16.39% | 29.12% | 15.48% | -3.47% | -19.49% | |
| MSCI Emerging Markets Latin America | -15.71% | 27.80% | 15.89% | -1.73% | -21.48% |
Source: justETF.com; As of 31.10.24; Calculations in EUR based on the largest ETF of the respective index.