John DeGoey
iShares MSCI Brazil Index ETF
XBZ-T
BUY
Jul 12, 2010
Brazil Index ETF (XBZ-T) and India ETF (XID-T). Big booster of emerging markets and it is a question of how you want to go, individual countries like these, a basket of 4 (BRIC) or a very wide diversified group. His bias is towards more, but if you feel strongly about individual countries, that is fine.
Brazil Index ETF. He is always hesitant on Brazil because it is a materials and energy-based economy, which we already have in Canada. Nothing wrong with it except that you probably have this as the class already covered.
Prefers a Canadian product even though they cost more than US products but you don’t have to worry about currency fluctuations and there is simplified tax reporting.
The risk on this is that it is Brazil. You have a very difficult situation there with the Pres. of Brazil. Not something he would be involved in. Brazil is very much like Canada; it is very resource dependent. However, there is also an overlay of corruption issues.