Brazil, Latin America’s largest economy, is lowering interest rates and the Senate there recently passed much-needed pension reform. With those factors, among others, in mind, perhaps it’s not surprising some professional investors are again warming to Brazilian equities.
The iShares MSCI Brazil Capped ETF EWZ, +1.70% is up 18.53% year to date, a gain that’s well ahead of the 9.88% returned by the MSCI Emerging Markets Index. EWZ has a three-year standard deviation of 28.48%, also well above that of the MSCI Emerging Markets Index, but this year, Brazilian stocks are justifying the added risk.
Via Market Watch