In options trading, iShares MSCI Brazil (NYSEArca: EWZ) flows continue to look optimistic, as calls were largely purchased again yesterday for the second straight session.

We have pointed to bullish looking flows in Brazil focused EWZ  via call option buying, and it is worth noting that Brazil as a country makes up 10.77% (the 3rd largest weighting) in the MSCI Emerging Markets Index, as tracked by iShares MSCI Emerging Markets (NYSEArca: EEM).

Furthermore, this particular ETF, EEM, has seen impressive asset inflows for several weeks now — mostly at the expense of Vanguard Emerging Markets (NYSEArca: VWO) — amid “index change” news that crept into the marketplace in early October.

Brazil is one of the so-called BRIC nations along with Russia, India and China.

Brazil has largely not participated in the equity upside of the 2012 markets, as EWZ is down 10.08% YTD versus EM’s larges weighting, China as measured by FXI (iShares FTSE China 25) up 3.24% during the same timeframe.

The S&P 500 Index is up 10.67% YTD in comparison. Currently, top holdings in EWZ are large cap names Petrobras (9.71%), Vale SA (7.92%), and Itau Unibanco (7.25%) and the fund itself is 25.13% allocated to mega caps with 17.60% weighted to large caps.