Rebounding Brazilian financial services shares would be a boon for EWZ because the ETF allocates 31.1% of its weight to that sector. Consumer discretionary names account for 6.5% of EWZ’s weight while industrials, another sector likely to benefit if the selic rate falls, are 5.4% of the ETF’s weight. [Brazil ETFs Try to Perk Up]

Some investors have grown tired of waiting around for a prolonged run of bullishness for Brazilian stocks and ETFs. On the other hand, recent options activity indicates some traders are either hedging short positions in the ETF or betting on a pop by the fund.

“With more than $435 million leaving the fund via redemption activity in the trailing one month, making nearly $1 billion out of the fund year to date, we witnessed December 37 call buying in the product, with more than 35,000 contracts changing hands,” said Street One Financial Vice President Paul Weisbruch in a note out Monday.

iShares MSCI Brazil Capped ETF