Traders willing to bet on more downside for EWZ can consider the ProShares UltraShort MSCI Brazil Capped ETF (NYSEArca: BZQ). BZQ attempts to deliver two times inverse of the daily performance of the MSCI Brazil 25/50 Index, which acts as the underlying index for EWZ.
Related: Bad News for Brazil ETFs
Brazil is also plagued by some of the highest interest rates in the world, which are not benefiting the country’s banking sector. Although Brazil’s central bank has not hiked interest rates since last year, its benchmark borrowing cost of 14.25% is among the highest in the world, emerging or developed markets.
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iShares MSCI Brazil Capped ETF
