VanEck Brazil Small-Cap ETF

BRF

Valor de mercado US$ 26 mi

Brazilian equities, tanker shipping, utilities, cybersecurity and cloud computing ETFs led last week's winners. Here's what fueled their gains.

Markets priced in a more disciplined fiscal path as Bolsonaro's lead came with strong conservative Senate and governor results. Rates should fall regardless of the winner, but how far depends on a credible fiscal plan.

Brazil's current P/E of 12.5x versus emerging markets' 16.2x suggests a potential 29% upside if re-rating occurs post-election. Risks include Lula's political resilience, judicial influence, and historical underperformance at similar P/E levels, necessitating careful timing and monitoring.

The ongoing Iran war and Strait of Hormuz blockade have sharply disrupted global energy and fertilizer flows, with Brazil facing acute exposure. Brazil benefits from higher oil prices as a net exporter, but inflation and logistics costs are rising, pressuring domestic fuel and transport sectors.

2025 was a big year for ex-U.S. equities, as a declining dollar, tariff uncertainty, and domestic concentration risk drove investors abroad. Broad ex-U.S. equities performed well and rewarded those investors, but it was some notable subregions that really delivered.

NEW YORK--(BUSINESS WIRE)--VanEck announced today the 2025 annual distributions per share for its VanEck equity exchange-traded funds.

I recommend holding assets tracking major Brazilian indices despite new US tariffs, given heightened uncertainty and market volatility. Trump's 50% tariff on all Brazilian products will significantly impact Brazil's export-dependent economy, especially in commodities like oil and iron ore.

NEW YORK--(BUSINESS WIRE)--VanEck has announced the 2024 annual distributions per share for its VanEck equity exchange-traded funds (ETFs).

The VanEck Brazil Small-Cap ETF is a unique way to gain access to Brazil's stock market. 2023 was a strong year for Brazil's stock market, but stocks have pulled back sharply in 2024 due to political and economic concerns. Despite a bumpy 2024, the long-term outlook for Brazil's economy remains favorable, with potential for rate cuts and stronger growth in 2025.

Emerging markets continued to expand at a solid pace midway into the first quarter of 2024, supported by broad-based expansion across both manufacturing and service sectors.