How does ewz trace Brazil BVSP index?
- Thread starter kiev
- Start date
BVSP is a total return index so it includes the dividend. Its also priced in BRL. EWZ is not a total return ETF, you get paid the dividend. Its priced in USD. That accounts for most of the difference. They do have differences in composition but its not huge, they tend to follow each other quite a bit
I've been patiently waiting to start slowly accumulating EWZ in one of my long term holding accounts.
Think it can easily get into the mid/low teens.
Think it can easily get into the mid/low teens.
They are priced in different currency, that's the point.
Is there any deterioration for this ETF? And how do you think of RSX?
This thing is currently paying a hefty dividend, 4.61.
Considering it's an ETF of a country's index and not a sector or single company I doubt it ever gets a considerable dividend cut.
Looks good for a long term investment as long as Brazil ever gets their government act in order.
Don't forget about the Olympics too happening in 2016 Rio De Janeiro, those events tend to stimulate the economies.
I'm not long EWZ, not yet.
Considering it's an ETF of a country's index and not a sector or single company I doubt it ever gets a considerable dividend cut.
Looks good for a long term investment as long as Brazil ever gets their government act in order.
Don't forget about the Olympics too happening in 2016 Rio De Janeiro, those events tend to stimulate the economies.
I'm not long EWZ, not yet.
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its irrelevant. if you buy EWZ or the index in brazil, you are invested in the BRL. it doesn't matter if the quote is in another currency. they both give a similar exposure
From the small sampling of RSX trades I've done over the years, seems like it tracks oil prices relatively closely.
The thing about EWZ and RSX is when they bounce, you can catch a violent 20-25% move in only 2-3 weeks.
Yes, when they bounce the returns are quite impressive, and a lot of it depends on how oil performs in 2016. RSX rallied from the mid-teens to around $20 early last year, and perhaps that trade sets up again. As for EWZ, I thought it would stabilize in the mid-twenties, and I was incorrect on entry. The yield is acceptable and I'll wait for a rally to add more on the way up.