Re: Brazil
Posted: Sat Oct 28, 2017 9:42 amCountry ETFs Worth Owning: Brazil
by Rodrigo Soldon
I see this emerging market as a real diamond in the rough. Brazil’s had a tough go in the past year, given all the political upheaval, but for those who’re able to accept a little more risk in their investment diet, the First Trust Brazil AlphaDEX Fund (NASDAQ:FBZ) might be for you.
I’ve always liked First Trust’s approach to ETF investing. Their products are innovative and different from the plain vanilla offerings from iShares and Vanguard.
When dealing with an emerging market like Brazil, I think it provides investors with an advantage over the iShares offering.
FBZ tracks the NASDAQ AlphaDEX Brazil Index, which selects stocks from the NASDAQ Brazil Index that meet certain value and growth criteria including price to sales, price to book, price to cash flow and returns on assets amongst others.
Reconstituted and rebalanced twice a year, the median market cap is just $5.1 billion, meaning you’re buying a mid-cap ETF rather than a large-cap.
In existence since April 2011, it’s got a negative annual return. That being said, it’s up 30% year to date through Oct. 25 after a 57% return in 2016.
This isn’t every investor’s cup of tea — a management expense ratio of 0.8% will keep many away — but if you believe in the Latin American spirit, FBZ will get you outsized returns over the long haul.
Just remember to buy on the dips because there will be big ones from time to time.
Source: Investor Place
by Rodrigo Soldon
I see this emerging market as a real diamond in the rough. Brazil’s had a tough go in the past year, given all the political upheaval, but for those who’re able to accept a little more risk in their investment diet, the First Trust Brazil AlphaDEX Fund (NASDAQ:FBZ) might be for you.
I’ve always liked First Trust’s approach to ETF investing. Their products are innovative and different from the plain vanilla offerings from iShares and Vanguard.
When dealing with an emerging market like Brazil, I think it provides investors with an advantage over the iShares offering.
FBZ tracks the NASDAQ AlphaDEX Brazil Index, which selects stocks from the NASDAQ Brazil Index that meet certain value and growth criteria including price to sales, price to book, price to cash flow and returns on assets amongst others.
Reconstituted and rebalanced twice a year, the median market cap is just $5.1 billion, meaning you’re buying a mid-cap ETF rather than a large-cap.
In existence since April 2011, it’s got a negative annual return. That being said, it’s up 30% year to date through Oct. 25 after a 57% return in 2016.
This isn’t every investor’s cup of tea — a management expense ratio of 0.8% will keep many away — but if you believe in the Latin American spirit, FBZ will get you outsized returns over the long haul.
Just remember to buy on the dips because there will be big ones from time to time.
Source: Investor Place