Overview Of Global X Brazil Consumer ETF

Brazil has been in the news for all the wrong reasons recently after a disastrous world cup football campaign but that hasn’t deterred Global X, the New York-based firm to the launch the Brazil Consumer ETF (BRAQ). Soccer is definitely the pulse of the Latin American nation and Global X hopes to tap the consumer pulse by launching its new fund that comes just two weeks after Global X introduced the Brazil Mid Cap ETF (BRAZ). The Brazil Consumer ETF (BRAQ) was launched on 8th July 2010 offers investors targeted exposure to sectors of the Brazilian economy, providing additional options for investing in one of the largest and most unique emerging economies. Global X also plans to launch ETFs tracking Brazil’s financial, industrial, raw materials and utilities industries in the near future.

BRAQ tracks the Solactive Brazil Consumer Index, a benchmark designed to reflect the performance of Brazil’s consumer sector. The ETF will track at least 20 companies and at most 40 companies in Brazil. BRAQ has the highest weights in the food and beverage (34%), retail (25%), and personal and household goods (19%) sectors.

The Solactive Brazil Consumer Index is designed to reflect the performance of the consumer sector in Brazil. It is comprised of securities of companies that have their main business operations in the consumer sector and are domiciled or have their main business operations in Brazil.

Using a replication strategy, the Global X Brazil Consumer ETF will normally invest at least 80% of its total assets in the securities of the underlying Index and in depositary receipts based on the securities in the Index. The Underlying Index is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure the performance of the consumer sector of the Brazilian economy, as defined by Structured Solutions AG. The Underlying Index is sponsored by an organization (“Index Provider”) that is independent of the Fund and Global X Management Company LLC, the investment adviser for the Fund.


Top 10 Index Constituents Of BRAQ

CIA DE BEBIDAS DAS AME 4.75%
BRF - BRASIL FOODS 4.75%
CIA BRASILEIRA DE DIS 4.75%
NATURA COSMETICOS SA 4.75%
HYPERMARCAS S.A 4.75%
LOJAS RENNER S.A. 4.75%
SOUZA CRUZ SA 4.75%
GAFISA SA 4.75%
JBS SA 4.75%
LOJAS AMERICANAS SA-PREF 4.75%
Other 52.50%

Fund Management

Stock Exchange: NYSE Arca
Total Expense Ratio: 0.77%
Bloomberg IOPV Ticker: BRAQIV
Website: www.globalxfunds.com

Portfolio Managers: The professionals primarily responsible for the day-to-day management of the Fund are Bruno del Ama and Jose C. Gonzalez. Mr. del Ama and Mr. Gonzalez have been Portfolio Managers of the Fund since inception

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