BZF has gained almost 5% since March 25, the first trading after the S&P downgrade and ETFs with large allocations to real-denominated have strengthened since then as well. For example, the actively managed WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD) is up 2.2% since the S&P downgrade. That ETF features an 11% allocation to Brazil, making it the ETF’s largest country weight.

Although EWZ and BZF have surged over the past 90 days, but only recently have investors been warming to the largest single-country ETF tracking a Latin American economy. Since April 15, EWZ has pulled in almost $309 million in new assets after losing $158.4 million in assets in the first quarter.

WisdomTree Brazilian Real ETF

ETF Trends editorial team contribute to this post.