A Quick Post on Brazil

Brazilians are going to polls today. The current President Dilma Rousseff seems like will win again. From an investor’s point of view, Dilma has been a disaster when she was elected back in 2010 for the first term. If Dilma wins investors may have to brace themselves for another wild ride.

Here are a few interesting stats in terms of Brazilian equities:

  1. The benchmark Bovespa index is by nearly 15% in the past five years and year-to-date it is up by 8%.
  2. The iShares MSCI Brazil Capped ETF(EWZ) has lost 40% in the five years and is flat so flat so far this year.
  3. The state-owned oil company Petrobras (PBR) plunged 71% in 5 years.

Performance of iShares MSCI Brazil Capped ETF – 5 years:

Click to enlarge

EWG 5 Years

Source: Yahoo Finance

Year-to-date performance of Brazilian exchange-listed ADRs:

S.No.CompanyTickerYear-to-date change %Industry
1EmbraerERJ18.49%Aerospace & Defense
2BRF S.A.BRFS15.52%Food Producers
3Itau UnibancoITUB14.18%Banks
4Banco BradescoBBD13.09%Banks
5GolGOL9.63%Travel & Leisure
6Comp. Paranaense de Energia-COPEL ELP8.45%Electricity
7Banco Santander BrasilBSBR4.10%Banks
8Telefonica BrasilVIV1.98%Fixed Line Telecom.
9Petroleo Brasileiro-PetrobrasPBR1.38%Oil & Gas Producers
10Centrais Eletricas Brasileiras-EletrobrasEBRUNCHElectricity
11Banco Bradesco BBDO-0.43%Banks
12Companhia Energetica de Minas Gerais-CEMIGCIG-1.34%Electricity
13Companhia Brasileira de Distribuicao-CBDCBD-2.24%Food &Drug Retailers
14TIM ParticipacoesTSU-3.39%Mobile Telecom.
15CPFL EnergiaCPL-5.06%Electricity
16BrasilAgroLND-7.07%Real Estate Inv&Serv
17Fibria CeluloseFBR-7.79%Forestry & Paper
18AMBEV S.AABEV-10.75%Beverages
23Companhia Energetica de Minas Gerais-CEMIGCIG-27.93%Electricity
26Companhia Siderurgica Nacional-CSNSID-42.42%Indust.Metals&Mining
27OiOIBR-57.93%Fixed Line Telecom.

Source: BNY Mellon

The complete list of Brazilian ADRs trading on US exchanges and OTCs can be found here.

Disclosure: Long ITUB, BBD and PBR

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