The iShares MSCI Brazil (NYSEArca: EWZ) and other ETFs tracking the emerging market were lower Tuesday as hundreds of thousands took to the streets in anti-government protests that have quickly gained momentum.
EWZ was down more than 1% in early U.S. trading Tuesday.
As many as 200,000 demonstrators turned out in Brazil’s largest cities in the largest protests in two decades, Reuters reports. “Monday’s demonstrations were the latest in a flurry of protests in the past two weeks that have added to growing unease over Brazil’s sluggish economy, high inflation and a spurt in violent crime,” according to the report.
EWZ was down 15% for the trailing three months heading into Tuesday’s trading. [A Brazil ETF That Hedges Against a Depreciating Real]
The Brazil fund joins other single-country ETFs such as Shares MSCI Turkey (NYSEArca: TUR) and Market Vectors Egypt (NYSEArca: EGPT) that have been hit by anti-government protests in recent weeks. [Another ETF Vulnerable to Domestic Strife]
In Brazil, the anger started with small protests against bus-fare increases “then evolved into a broader movement by groups and individuals irate over a range of issues including the country’s high cost of living and lavish new stadium projects,” the New York Times reports.
Brazil will host the 2014 World Cup and the 2016 Olympic Games.
iShares MSCI Brazil