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3 ETFs to Buy When the Dollar Falls

When the U.S. dollar falls, these ETFs will get a boost

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iShares MSCI Brazil Index (EWZ)

etfs-to-buy-ewzAlthough I think emerging-market stocks will continue to underperform throughout 2014 — mainly due to the drag from China as it works through the comedown from its massive credit bubble — there will be pockets of strength encouraged by the dollar’s weakness. One such area is Brazil, which is particularly sensitive to currency fluctuations due to its reliance on foreign capital inflows.

The iShares MSCI Brazil Index (EWZ) provides exposure to that strength by holding a collection of Brazilian stocks equal to 85% of the available market capitalization in that country. The largest holding by allocation is Petrobras (PBR), the state-owned energy company benefiting from the discovery of vast offshore oil reserves.

Expenses for EWZ run 0.62%.

Disclosure: At the time of writing, Anthony had recommended SLV, SIL, and EWZ to his clients.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters, as well as Mirhaydari Capital Management, a registered investment advisory firm.

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