US ETF Market Ushers In Active Investing in India, Brazil Stocks

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Investors betting on Brazil and India as the markets least vulnerable to the turmoil in emerging markets now have the opportunity to buy stocks in those countries via actively-managed exchange-traded funds.

The Global X Brazil Active ETF and Global X India Active ETF both launched Friday amid increased clamor for Brazil as it embarks on interest-rate cuts and for India as it overtakes China as the world’s fastest growing major economy. The new funds, whose tickers are BRAZ and NDIA respectively, come at a time emerging-market volatility has spiked in the backdrop of an economic meltdown in China, debt distress across Africa, war in eastern Europe and political turmoil in Latin America.

Brazil’s Ibovespa is up almost 5% this year, gaining five times as much as the MSCI Emerging Markets Index. India’s Sensex is also outperforming with a 6.8% advance. Economists project the South Asian nation will grow at least 1.5 percentage points faster than China over the next two years. It’s also benefiting from so-called friend-shoring opportunities, by cornering some of the high-technology manufacturing business that’s moving out of China.

 

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