After recommending caution with Brazilian banks for close to three years, we believe the sector is becoming attractive again…We expect a tapering of the policy of strong public sector loan growth, a policy that we believe has outlived its practical usefulness,” according to part of a Santander note posted by the FT.

BRAF recently moved above its 200-day moving average for the first time since May and its 20-day moving average is nearing an upside cross of the 200-day line, a bullish sign. A move above $13 could take BRAF back to its 52-week around $14.40.

Investors looking to participate in further upside for Brazilian banks without the all-in sector commitment of BRAF can turn to a familiar place. The iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) has a 28.2% weight to financials, by far the ETF’s largest sector weight.

Global X Brazil Financials ETF