Before falling out of your seat, it is best to note this is far from endorsement of the iShares MSCI Brazil Capped ETF (NYSE: EWZ) and Brazil ETF brethren.
Year-to-date, EWZ and the Market Vectors Brazil Small Cap ETF (NYSE: BRF) are down 26.8 percent and 36.8 percent, respectively, while the MSCI Emerging Markets Index is down “just” 8.9 percent. As has been widely covered in this space and elsewhere, Brazilian stocks and the corresponding ETFs have been a hot mess this year.
Simply put, long bets on EWZ have not been rewarded and positive catalysts have been nearly non-existent, but one might be looming. Brazil is awash in protests with participants calling for President Dilma Rousseff to be impeached. That makes sense. Rousseff is seen as at the heart of a wide-ranging corruption scandal at Petrobras (NYSE: PBR), one of EWZ's largest holdings. ...
/www.benzinga.com/trading-ideas/long-ideas/15/08/5769008/a-weird-political-catalyst-could-spark-brazil-etfs alt=A Weird Political Catalyst Could Spark Brazil ETFs>Full story available on Benzinga.com
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