Brazil ETFs: what to expect now?

8:28 am ET, 29 May 2018

Brazilian equities plunged yesterday because of ongoing truckers' strike, which hit all sectors of the economy.   The BOVESPA index hit this year's low at 75,356, which is a far cry from this year's peak at over 87,000.  What can you expect now?

The top ETFs affected by the strike and overall concerns about the Brazilian economy are:

  • VanEck Vectors Brazil Small-Cap ETF (BRF)
  • iShares MSCI Brazil Small-Cap (EWZS
  • ProShares Ultra MSCI Brazil Capped (UBR)
  • Direxion Daily Brazil Bull 3X ETF (BRZU)

But there are some positive movements hoping to address truckers' protests.  Brazil’s President Michel Temer announced new measures to reduce truckers' operating costs hoping to end a week-long protest that has severely hampered the flow of food and fuel in Brazil. 

This is expected to cost Brazilian taxpayers some $2.7 billion.

Concerns over the Brazilian economy persist, which is the reason some foreign investors are pulling back money from the country.  

Investors' sentiment about Brazil ETFs is down 40% based on Stocktwits sentiment indicator.  Panic selling may be abundant--and we'd like to remind investors to do their own research before making rash decisions. 

For the latest information about Brazil ETFs check out Finstead where you can get the following:

  • ETF profile—search for "BRZU profile"; "BRZU segment"; "BRZU net assets";
  • News—search for "BRZU news";
  • Performance—search for "BRZU return";
  • Expenses—search for "BRZU expense ratio"; "BRZU Sharpe ratio";
  • Risk profile—search for "BRZU Beta";
  • ETF compares—search for "BRZU vs. UBR".

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