“Brazilian equities are down on their luck despite its sizzling economy, but some U.S. companies are drawing trump cards from sales growth. After surging 83% last year, the Bovespa has shed 11% in 2010. The iShares Brazil ETF (NYSE:EWZ) is off more than 15%. Shares in Brazilian companies listed in New York have fallen a similar amount, according to the BNY Mellon ADR index,” Reinhardt Krause Reports From IBD.

Krause goes on to say, “Even so, many U.S. firms — such as tech giants Intel (NASDAQ:INTC) and Cisco Systems (NASDAQ:CSCO) as well as GM, Cummins (NYSE:CMI), Johnson Controls (NYSE:JCI), Agilent Technologies (NYSE:A) and Nacco Industries (NYSE:NC) — are getting a boost from Brazil’s robust economy. Fears that Europe’s debt crisis and Chinese tightening could undermine global growth and commodities demand have hurt Brazilian stocks in recent weeks.”

“Presidential politics also is weighing on investors. As Brazil’s Oct. 3 election nears, ruling party candidate Dilma Rousseff has pulled ahead of her main rival, Jose Serra, ex-governor of Sao Paulo state. The central bank on Monday lifted its 2010 GDP growth forecast to 6.3% after the economy shrank 0.2% last year. In April, it raised the benchmark rate for the first time since 2008, to 9.25%. Policymakers sought to curb inflation — now about 5.5%. Another factor weighing on Brazilian equities is a 2% tax on foreign buys of Brazilian stocks and fixed income instruments. The government introduced the IOF tax in October to curb capital inflow,” Krause Reports.

See more to the story: HERE

Here are some details on the The iShares Brazil ETF (NYSE:EWZ) below:

MSCI Brazil Index Fund (NYSE:EWZ)

The iShares MSCI Brazil Index Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the Brazilian market, as measured by the MSCI Brazil Index.

NYSE:EWZ