“Now the market will start pricing in the economic recovery,” James Gulbrandsen, Latin American chief investment officer at NCH Capital, told Bloomberg. “I don’t believe Temer will be able to pass all the measures he wants to, but the previous administration was so horrible that anything they get is better.”
SEE MORE: Brazil ETFs Strengthen on Realistic Government Guidance
Leading the charge on the Brazilian index, Banks Itau Unibanco Holding SA and Banco Bradesco SA contributed to the most to the equity market’s gains Monday.
Itau Unibanco is the largest component of EWZ, accounting for 10.9% of the ETF’s portfolio. Banco Bradesco also makes up 8.0% of EWZ’s underlying index. EWZ includes a hefty 35.7% tilt toward the financial sector.
For more information on the Brazilian markets, visit our Brazil category.
iShares MSCI Brazil Capped ETF