Still, it is important to note that Moody’s did not lower Brazil’s sovereign credit rating, something Standard & Poor’s did in late March. S&P lowered the country’s sovereign debt rating to BBB-, the lowest investment grade. [Brazil ETFs Deal With Ratings Downgrade]
Since March 25, the day after the S&P downgrade was revealed, EWZ posted a 20.5% gain heading into Tuesday. The iShares MSCI Emerging Markets ETF (NYSEArca: EEM) was up 13.8% over the same period.
EWZ’s recent swoon comes at an inopportune time for investors arriving late to the ETF’s party. After struggling to capture new assets even as it surged late in the first quarter and through the second quarter, EWZ had added $133 million in new capital this month while its share price has tumbled.
iShares MSCI Brazil Capped ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of EEM.