Credit: The Bovespa Index is the flagship index of the Brazilian stock exchange, known by its acronym, BM&FBOVESPA. The index includes 68 of the 370 companies listed on the exchange, which represent roughly 70% of the exchange's total capitalization and 80% of its trades. The Bovespa is calculated in reference to prices on February 1, 1968.
[caption align="alignright" caption="Brazil's Bovespa stock exchange in Sao Paulo"] 
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The Bovespa also provides indices based on market capitalization, liquidity, industry, corporate governance and sustainability. The Brazilian exchange has a market capitalization of about $1.1 trillion (the 10th biggest in the world) and a trading value of $1 trillion a year, making it the largest emerging market exchange outside of China. Brazil offers the biggest and most liquid markets in Latin America.
GDP of $2.2 trillion (on a purchasing power basis) makes Brazil the world's eighth-largest economy. At less than 3%, Brazil's GDP growth forecast for 2012 is the lowest among the BRIC nations, and it is the smallest of the BRIC economies. However, Brazil trails Russia by only about $100 billion in GDP.
Brazil's Bovespa, with its numerous ADRs and ETFs, is one of the most accessible emerging markets for the American investor. AmBev ( ABV , quote ), the largest brewer in Brazil , and financial stocks like Itaú Unibanco ( ITUB , quote ) and Banco Bradesco ( BBD , quote ) allow investors an access point for the country's growing middle class .
Growth from the increasing number of air passengers can be accessed through the ADRs of LATAM Airlines Group ( LFL , quote ) and Gol Linhas Aereas Inteligentes ( GOL , quote ). The "Boeing of the emerging world," Embraer ( ERJ , quote ), is still proving that it can compete globally for civilian and military contracts. Both the mining giant VALE ( quote ) and the steel producer Gerdau ( GGB , quote ) may be affected if iron ore prices continue on their current downward trend .
The energy producer Petrobras ( PBR , quote ) has seen its stock price increase over the last month, but questions remain about how the company will fare in the longer term .
ETFs also allow investors to access larger portions of the Brazilian market. The iShares MSCI Brazil Index Fund ( EWZ , quote ) includes most of the country's well-known companies, while the Market Vectors Brazil Small Cap ETF ( BRF , quote ), as its name suggests, includes some smaller and less famous names.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
