The Brazilian market has proved to be stronger-than-expected, but do the stocks and exchange traded funds (ETFs) have staying power? The rise has been similar to other emerging markets, and due to the commodities boom iShares MSCI Brazil Index Fund (EWZ) has risen to the top.

Inflation in Brazil has been near 40-year lows, the currency is strong, and the global commodities need is still present. However, EWZ fell 8%, the week ending November 23; and made the list for the third worst-performing iShares, reports Don Dion for Seeking Alpha. This week, EWZ came back 4.5%.

The past weeks events are a reminder of how risky Brazil, South America and emerging markets can be. EWZ is highly concentrated, with Cia Vale Del Rio Doce (RIO), Petrobas (PZE) and their other share classes, making up 47.6% of the ETF’s assets. Both have been among the strongest big-company stocks in the world lately. EWZ is up 73.1% year-to-date.

Tags: Brazil, Currency ETFs, Emerging Markets, EWZ, Latin America