I am raising my recommendation on the Franklin FTSE Brazil ETF from hold to buy, citing strong forward drivers. Brazil's 2026 outperformance is driven by election optimism and the market's search for AI-resilient, commodity-sensitive economies. FLBR's valuation is undergoing multiple repricings, with potential upside if P/E multiples converge with emerging market peers.
FLBR hits a 52-week high as Brazil's stronger currency and equity rally fuel momentum for the Brazil-focused ETF.
I recommend holding the Franklin FTSE Brazil ETF due to improved momentum but caution over potential political volatility. President Lula's declining approval and potential trial of former President Bolsonaro could cause market instability. Despite strong performance, Brazil's macroeconomic issues and political risks warrant a cautious approach.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 34,584 | $821,996.12 | $773,298.24 | -$48,697.88 | -5.92% |
Leonid Berline ARMSTRONG ADVISORY GROUP Inc. | 4,730 | $84,950.85 | $104,272.85 | $19,322 | 22.74% |
Accordant Advisory Group Inc. Accordant Advisory Group Inc | 309,029 | $5.78M | $6.81M | $1.02M | 17.73% |
Marshall Investment Management LLC MARSHALL INVESTMENT MANAGEMENT, LLC | 142 | $3,395 | $3,128.97 | -$266.03 | -7.84% |
| PR Philippe Reitzer Banque Transatlantique SA | 12,035 | $287,516 | $265,131.05 | -$22,384.95 | -7.79% |
| ARCA Exchange | US Country |
The described company is an investment fund that focuses on the Brazilian market by primarily investing in securities that form part of the FTSE Brazil Capped Index. This index is a subset of the FTSE Brazil Index, targeting large- and mid-capitalization companies within Brazil. The goal of the fund is to mirror the performance of these Brazilian stocks, serving investors looking to gain exposure to Brazil's economic landscape. The fund adheres to a strategy of investing at least 80% of its assets directly into the securities listed in the FTSE Brazil Capped Index, along with depositary receipts that represent such securities, thereby ensuring a strong alignment with the index's performance. It is important to note that this fund is non-diverse, meaning it concentrates its investments within a specific geographic region and market, in this case, Brazil, as opposed to spreading investments across a wide range of regions or sectors.
The fund's primary product is its investment service that targets the FTSE Brazil Capped Index. This service is designed for investors who wish to capitalize on the performance of Brazilian large- and mid-cap stocks. By maintaining a portfolio that reflects the composition of this index, the fund provides its investors with a targeted exposure to Brazil's stock market.
Alongside direct investments in the indexed securities, the fund also invests in depositary receipts. These are financial instruments that represent a company's foreign shares, allowing them easier trade on local stock exchanges. For investors, this means additional access to Brazilian companies through a form that's easily traded in their own or major international markets, potentially offering a different risk profile and liquidity aspect compared to direct stock investments.