However, if the Latin American market continues to experience political risks or if oil producers retreat on lower prices, ETF investors can use the ProShares UltraShort MSCI Brazil Capped ETF (NYSEArca: BZQ), which takes the -2x or two times inverse of the daily performance of the MSCI Brazil 25/50 Index, to hedge some of their broader emerging market positions.[related_stories]
Russia ETFs, like the Market Vectors Russia ETF (NYSEArca: RSX), have also experienced their fair share of strife after geopolitical risks from the Ukraine incursions and falling oil prices dragged on the market. RSX, though, has gained 14.9% year-to-date as some of the risks dissipated.
Nevertheless, if we experience volatility down the line, ETF investors may use the Direxion Daily Russia Bear 3x Shares (NYSEArca: RUSS), which takes the inverse 300% or -3x daily performance of Russian equities, to hedge the downside.