Choosing a Brazilian ETF

Investing / Others
1

Hi! I need your Mustachian help!

I want to invest in a Brazilian ETF. I know that many of you would suggest a US-based fund, but I prefer a EU-based one due to the uncertainty of future situation between US and CH in this domain.

I found two iShares ETF. They are almost identical, with the same index, similar AUM (roughly 150M each) and reasonable liquidity. The point is that one has lower TER (0.33%) but is based on Germany, whereas the other has higher TER (0.74%) but is in Ireland. Which one is in your opinion more cost-efficient, considering both TER and tax consequences?

Here the two funds:

https://www.ishares.com/ch/intermediaries/en/products/304304/ishares-msci-brazil-ucits-etf-de-acc-fund
https://www.ishares.com/ch/intermediaries/en/products/251853/ishares-msci-brazil-ucits-etf-inc-fund

Thanks in advance for your help!

2

What uncertainty?

If you insist on European ones, the German one is obviously cheaper.
Still, AUM = USD 169,002,401

Compare that to the US one (EWZ):
USD 5,489,655,265

There is just no comparision, and the liquidity difference is therefore huge (you’ll basically be making trades with market markets at large spreads).

3

Hi glina and thanks for your reply. By uncertainty I meant the regulation issue. How long will we be able to trade US-based funds. Correct me if I am wrong, but if I understood it correctly many brokers already blocked the possibility in 2020.

Regarding the German vs Irish fund, I just wanted to check if the Irish one has fiscal advantages due to special agreements with Brazil or Switzerland or not. Thanks again!