Infrastructure Breakout: Brazil, India Infrastructure ETFs May Have More In Store

Emerging markets ETFs have certainly started to awaken from their slumber earlier this year and that is certainly true of Brazil and India-specific ETFs. Of course this theme makes funds such as the iShares MSCI Brazil Index Fund EWZ and the India equivalents worth a look, but there is another avenue worth pursuing. Drill down a bit more on both fast-growing markets and you'll find that the charts of the EGShares Brazil Infrastructure ETFBRXX and the EGShares India Infrastructure ETF INXX look very attractive. In fact, it's fair to say both BRXX and INXX are in breakout mode. Both ETFs are still fairly new. BRXX is almost 14 months old and INXX made its debut in August and neither is going to win any volume competitions, but the fundamental thesis is sound and the charts are strong. BRXX, which holds 30 stocks with an expense ratio of 0.85%, has surged almost 5% in the past week. The ETF contains such familar names as Vale VALE, high-yielding CPFL Energia S.A. CPL and Brazilian steel giant Companhia Siderurgica Nacional SID. BRXX has often been touted as a way to play Brazil's hosting of the 2014 World Cup and 2016 Summer Olympics. Well, now would be the time the country needs to start putting that infrastructure in place. Not to mention, the economy is growing at such a rate that infrastructure demands are bound to increase. INXX also holds 30 stocks with an expense ratio of 0.85%. While India won't be hosting the World Cup or the Olympics anytime soon, this the second-fastest growing major economy in the world and the infrastructure starting point is quite low. On a fundamental basis, India's infrastructure is so far behind China's, that INXX is an alluring play on the thesis that India's infrastructure can only get better. Tata Motors TTM and Sterlite Industries SLT are among INXX's top holdings. Up 6.4% in the past week, INXX, could surge another $4 or more from here if the 200-day line just above $20 is surpassed on strong volume.