Second quarter growth in Brazil exceeded all expectations with GDP expanding at 8.8% compared to the same period a year earlier.

EWZ

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According to the AP, the Brazilian Finance Ministry had forecast growth of between 0.5 percent and 1 percent for Q2.

Capital spending was a key driver of the economic expansion, up 26.5% from a year ago as Brazilian companies ramped up production to meet strong demand.  Overall growth for the first half of the year was 8.9% compared to the first half of 2009.

The $9.6 billion MSCI Brazil Index Fund ETF (EWZ) is one the largest Brazil exchange traded funds. The ETF’s top holdings include PetrobrasVale, ITAU Unibanco and Banco Bradesco.  EWZ carries a 0.65% expense ratio and the 30-day SEC yield is 1.48%.

For more investing choices, see Investing in Brazil with ETFs.