Emerging Market ETF Trouble Spots

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.


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.