“If you look internationally, there’s havoc, and the havoc is that the dollar is moving so aggressively that it is going to cause, not turmoil, but actual wreckage, in a lot of funds that have money in some of these emerging markets. I think the logical place to look is Brazil,” Jim Cramer said on CNBC.
For instance, the WisdomTree Brazilian Real ETF (NYSEArca: BZF) is the worst performing currency ETF this year, falling 13.5% year-to-date. [Things are Unbelievably Bad for Brazil ETFs]
On the other hand, more aggressive traders can capitalize on the weakness in Brazil through inverse or bearish ETF plays. For instance, the ProShares UltraShort MSCI Brazil Capped (NYSEArca: BZQ), which takes the -2x or -200% daily performance of the MSCI Brazil 25/50 Index, has increased 31.7% year-to-date.
For more information on the developing economies, visit our emerging markets category.
Max Chen contributed to this article.