Brazilian exchange-traded funds are increasingly gaining favour with emerging market investors looking to benefit from a country rich in energy and natural resources, with attractive demographics and good economic fundamentals.

At the end of February, Brazilian stocks made up 15.9% of the MSCI emerging market index, second only to China (17.8%) and ahead of Russia (7.3%) and India (7.2%). And, according to data from asset manager BlackRock, Brazil had ETF and exchange-traded product assets of $20.4bn and net new asset inflows of $826.4m in the first three months of 2011.