MarketVectorTM Brazil Economic Exposure Indexes

November 2022      
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.

 

For more information on our family of indexes, visit us

 

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.

 

For informational and advertising purposes only. The views and opinions expressed are those of the authors but not necessarily those of MarketVector Indexes GmbH. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. MarketVector Indexes GmbH does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. Inclusion of a security within an index is not a recommendation by MarketVector Indexes GmbH to buy, sell, or hold such security, nor is it considered to be investment advice.

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