The Global X Brazil Mid Cap ETF (BRAZ) began trading today (6/22/2010). According to the press release (pdf), it is the first ETF to target the mid cap companies of Brazil and offers access to the country’s internal growth. Bruno del Ama, CEO of Global X Funds says “Such companies are currently sparsely represented in existing exchange traded fund options, yet are poised to benefit the most from the country’s solid macro fundamentals.”

Like many of the other ETFs from Global X, BRAZ will be based on a Solactive Index from Structured Solutions AG. Each component of the index is weighted proportionally according to its free float market capitalization.

According to the BRAZ fact sheet (pdf), the underlying index had 40 holdings as of 5/31/10. The largest are Cia Energetica de Minas Gerais 5.4%, CPFL Energia SA 5.1%, All America Latina Logistica 5.0%, Metalurigca Gerdau SA-Pref 4.6%, and Bradespar SA-Pref 4.50%.

The sector weightings are Utilities 20.8%, Consumer Staples 17.1%, Industrial 16.2%, Financial 14.5%, Materials 13.8%, Consumer Discretionary 8.8%, and Communications 8.7%. The fund will initially have no exposure to Energy, Technology, or Health Care.

The BRAZ fund summary indicates an expense ratio of 0.69%. The current dividend yield of the index is about 3.5%, which should place the fund’s yield at about 2.8% after expenses.

In less than a month we will be celebrating the tenth anniversary of the first Brazil ETF, iShares MSCI Brazil (EWZ) back on July 14, 2000. As of today, it has gathered more assets than any other non-U.S. single-country ETF with more than $9 billion under management.

Success spawns competition, and last year Market Vectors Brazil Small Cap (BRF) was introduced. We thought at the time that BRF would be a success story too, and by all measures it has been. Competition didn’t end there, as EGS INDXX Brazil Infrastructure (BRXX) was introduced earlier this year, and ProShares offers both leveraged Brazil and inverse Brazil products.

Some observers will likely say there are now too many Brazil ETFs. Yet others, including myself, will be quick to point out they all offer something different – and that is true of BRAZ. The sector profile and holdings of the mid-cap focused BRAZ are very different than the large cap exposure provided by EWZ. Additionally, I found only about 5% of BRAZ current holdings overlap with the small cap stocks in BRF. The new Global X Brazil Mid-Cap ETF truly offers something different. I will likely need to update my “Two Faces of Brazil” article to reflect a larger number.

The prospectus (pdf) also includes the Global X China Mid Cap (CHIA) in addition to a whole family of Brazil ETFs. Additional funds on the drawing board include the Brazil Consumer ETF (BRAQ), Brazil Financials ETF (BRAF), Brazil Industrials ETF, Brazil Materials ETF, and Brazil Utilities ETF (BRAU).

Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.