Solactive Brazil Financials

January 12, 2019


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The popular provider of ETFs investment negocioados in the stock market of New York Global X Funds, has developed a new Brazilian ETF focused on the financial sector (NYSEARCA: BRAF). This new Brazilian ETF that follows exactly the so-called index Solactive Brazil Financials, which is designed to track the performance of the Brazilian financial sector. The index has 25 holdings and shares of banks such as the Itau Unibanco, Banco Bradesco and Banco do Brazil are among the main positions. The iShares MSCI Brazil ETF (NYSEArca: EWZ), with 9,48 billion dollars in assets, is still the largest Brazilian ETF. EWZ contains around 80 shares, and contrast to BRAF covers a wide variety of Brazilian shares. The financial investment in Brazil is expected to grow 22% per year until 2020, according to Itau Unibanco. In addition, Brazil has also been the beneficiary of the increase in mergers and acquisitions.

Dealogic reported mergers and acquisitions in the first quarter of 2010 by 37.8 thousand million dollars and an increase in the flow of operations over a year ago. Brazil is becoming the financial centre of the region, thanks to the strong macroeconomic trends over the past decade as the decrease of the tax debt and unemployment, the increase of credit and industrial production, said Bruno de el Ama, CEO of Global X Funds. These favourable trends with large projections give a solid platform for the growth of the financial sector in the future. This new Brazilian ETF provides efficient access to these topics. The relationship of annual expenditure of BRAF is 0.77%. This financial ETF that follows the financial behaviour of Brazilian companies are part of a family of ETFs from Brazil, including Global X Brazil Consumer ETF (NYSEArca: BRAQ) and Brazil Mid Cap ETF (NYSEArca: BRAZ) which have been introduced recently. Other members of the family of these funds do not even include the launch of ETFs in Brazilian industrial, materials and utilities sectors.