Loving Leveraged Latin America ETFs

Amid a corruption scandal at Petrobras (NYSE: PBR), Brazil’s state-run oil company and one of EWZ’s largest holdings, high interest rates, a rising current account deficit and slack economic growth, investors yanked $453.5 million from EWZ in the first quarter. Despite a solid start to the second quarter, no new money has come into the Brazil ETF, but no money has departed, either. [Brazil ETF at a Critical Juncture]

BRZU and LBJ have seen modest creation activity in recent weeks. For the five-day period ending Monday, BRZU’s volume was nearly 7% above the trailing 20-day average. LBJ’s five-day volume was 18.5% above the 20-day average, according to Direxion data.

Direxion Daily Brazil Bull 3x Shares


Tom Lydon’s clients own shares of EEM and ILF.