iShares MSCI Brazil Capped ETF (NYSEArca: EWZ)
Odds to win: 11/4
ETF YTD: 15.1%
Comment: Last month, Goldman Sachs said buy Brazilian stocks on thesis that stocks in the World Cup victor’s country rise 3.5% in the month after the tournament concludes. Two things to consider about that advice: Brazil is the favorite, but no lock. Second, as Goldman noted, post-World Cup gains often quickly evaporate. [Buy Brazil ETFs as World Cup Bets]
Still, there is no denying EWZ and other Brazil ETFs have been bid higher leading up to today. The largest Brazil ETF has surged 7.1% in just the past week and traded higher Wednesday even as most emerging markets struggled, another sign of EWZ’s improving relative strength against key benchmarks. [Pre-World Cup Bounce for Brazil ETFs]
During the 2010 World Cup, Brazil saw a fall of 74.5% in trading volume when their national team was playing and a 28.5% fall when other nations were playing,” according to Emerging Equity.