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:
- The benchmark Bovespa index is by nearly 15% in the past five years and year-to-date it is up by 8%.
- The iShares MSCI Brazil Capped ETF(EWZ) has lost 40% in the five years and is flat so flat so far this year.
- The state-owned oil company Petrobras (PBR) plunged 71% in 5 years.
Performance of iShares MSCI Brazil Capped ETF – 5 years:
Click to enlarge
Source: Yahoo Finance
Year-to-date performance of Brazilian exchange-listed ADRs:
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