BRAQ: First ETF to Truly Target Brazil’s Consumer Sector

The Global X Brazil Consumer ETF (BRAQ) began trading on 7/8/2010.  This new ETF will focus on the increasingly important consumer sector of Latin America’s largest economy.  The launch of Market Vectors Brazil Small Cap (BRF) a year ago was touted as a play on Brazil’s internal growth with a tilt toward consumer spending, as was the Global X Brazil Mid Cap ETF (BRAZ) last month.  However, BRAQ is the first ETF to truly target the potentially lucrative consumer sector of Brazil. The underlying Solactive Index from Structure Solutions AG weights each component proportionally according to its free float market capitalization. The weight of any stock is capped at 4.75% to help ensure diversification and broad coverage of the sector.  Excess weight is allocated proportionally to components that are not capped.  Additionally,…