The Market Vectors Brazil Small-Cap ETF, distributed by Van Eck Global, has reached USD1bn in assets.
The fund was the first ETF listed in the US to focus on Brazilian small-cap stocks.
It seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Brazil Small-Cap Index, a basket of 61 securities of small-capitalisation companies that are domiciled and primarily listed on an exchange in Brazil, or that generate at least 50 per cent of revenues in Brazil.
The fund seeks to provide investors with exposure to Brazil’s domestic investment themes and opportunities, such as the growth potential in the country’s homebuilding and consumer goods sectors.
“BRF has appealed to investors looking for a different type of exposure to Brazil’s local economy,” says Jan van Eck, principal of Van Eck Global. “In our view, small-cap stocks represent excellent direct exposure to the Brazilian economy since small-caps are typically driven by local trends. We are pleased to see that the interest in BRF continues to grow among financial advisors and their clients.”