In a world economy that seems to be increasingly driven by the emerging market demand for commodities it’s crucial to have some knowledge about Brazil which has become a commodity powerhouse.  Brazil is the largest producer of Sugar Cane and Oranges as well as the second largest producer of Dry Beans and Soybeans.  It has also become a net exporter of crude oil, coffee, beef, chicken and ethanol.

From an investment standpoint the Brazil ETF – EWZ has been one of the best performers in the recent recovery from the 2008-2009 lows.  The number of ETFs that focus on Brazil has also grown as both the Brazilian economy and investor demand have proven to be robust.  One of my favorites is the Brazil Small Cap ETF – BRF which seems like it would be a volatile but well positioned fund in a post recession environment.   Having the double benefit of the tendency of small caps to outperform large caps over time along with the tail wind of a fast growing emerging economy seems like it should be a good combination.  With both small caps and emerging countries volatility is high, so be careful.  Brazil was one of the hardest hit markets during the credit crunch as you will see by the long term charts.

To see how BRF performs relative to EWZ you can take a look at this site:  http://brazil-etf.com