Summary

• Over the past 12 months, FTSE Brazil has outperformed FTSE All-World and FTSE Emerging by 36.2% and 36.4%, respectively, supported by strong fundamentals, attractive valuations, and a resilient domestic backdrop.
• Despite this, Brazil trades at a discount to All-World and other emerging market peers and has a similar return on equity (ROE).
• Brazil’s net oil exporter status offers a degree of resilience in the face of supply shocks, cushioning the domestic economy and equity market.

By Alex Nae, M.Sc., Quantitative Research Analyst, Global Investment Research, FTSE Russell and Tae Yoon Kim, CFA, FRM, Manager, Global Investment Research, FTSE Russell

Introduction

Latin America is an interesting part of the FTSE

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