Several Brazilian ETFs Down Over 25% in 2014
The Brazilian Bovespa had a volatile year in 2014 due to commodity and currency fluctuations. The index was only down 2.9% in local currency, but the Brazilian Real declined over 10% versus the US Dollar, causing Brazil-based investments to decline in USD terms. Several Brazil-focused investment funds actively trade in the US in the form of exchange traded funds (ETFs).
ETFs are set up to track the daily performance of an underlying index or strategy, allowing investors to buy a single security instead of many individual securities.
The following securities that track Brazilian investments were down over 25% each in 2014:
| Ticker | Fund Name | 2014 Performance |
| BRXX | EGShares Brazil Infrastructure | -31.06% |
| EWZS | iShares MSCI Brazil Small-Cap | -26.13% |
| BRF | Market Vectors Brazil Small-Cap | -25.79% |
If your financial advisor or stockbroker recommended that you invest in Brazilian securities, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in Brazilian securities, then you may have a claim for misrepresentation. If your investment objective was to only invest in safe and stable investments, you may have a claim for unsuitability. If Brazilian securities made up a large portion of your portfolio, then you may have a claim for over-concentration and lack of diversification. If your advisor purchased this fund without your knowledge, you may have a claim for unauthorized trading. If your advisor purchased this fund on margin, you may have a claim for excessive use of margin and negligence.
The attorneys at Carlson & Associates, P.A., located in Miami, Florida, represent investors who have lost money due to the improper conduct of financial advisors. If you would like to have a free consultation, we can be reached at (305) 372-9700 to discuss your options.