MarketVectorTM Brazil Economic Exposure Indexes
By Jesse Nacht, Index Research Associate
Did you know that despite Brazil’s role as a leading exporter of agricultural goods and metals, the leading Brazil equity benchmarks have only one-third of their revenue exposure from outside Brazil?
By isolating domestic and global exposure, the MarketVectorTM Brazil Economic Exposure Indexes (made up of the MarketVectorTM Brazil Global Exposure (BRL) Index and MarketVectorTM Brazil Domestic Exposure (BRL) Index) offers investors a unique and dynamic vehicle to align portfolios with the economic trends driving the Brazilian economy.
From the end of 2019 through mid-June 2022, leading Brazil equity benchmarks were down between 10 and 14 percent while the Brazil Global Exposure Index gained roughly 24 percent. Thanks to the post-pandemic run-up in commodity prices and pent-up consumer demand, global-oriented Brazilian stocks enjoyed an unprecedented period of outperformance. However, since mid-June 2022, as commodity prices softened and the prospects of a global recession grew, the Brazil Global Exposure Index has underperformed broad Brazil benchmarks by between 14 and 20 percent as of October 24.
This topic is explored in some more detail in a whitepaper published in our MVIS Insights of “Introducing the MarketVector Brazil Economic Exposure Indexes”.
Total Returns of the MarketVectorTM Brazil Economic Exposure Indexes
vs Ibovespa From 2013
Source: MarketVector IndexesTM, FactSet. Data as of June 30, 2022.
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About the Author:
Jesse Nacht is an Index Research Associate at MarketVector Indexes GmbH. Jesse’s core responsibilities include assisting in the design and analysis for the development of MVIS® Indexes. He holds a FINRA Series 57 Securities Trader License having come from a trading background. Jesse has an MA in Economics and Finance from Brandeis University’s International Business School and a BA in Economics from Brandeis University.
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