The iShares MSCI Brazil Capped ETF (NYSEArca: EWZ), the largest exchange traded fund tracking Brazilian equities, is one of 2016’s best-performing single-country emerging markets ETFs with a gain of 51.6%.

Left there, that sounds like a positive story, but it cannot be ignored that Brazilian stocks and EWZ have recently been slumping. For example, EWZ is more than 18% below its 52-week high achieved in October and the ETF labors below its 20- and 50-day moving averages. On a concerning, related note, the ETF is just 1.2% below its 200-day line.

Earlier this year, EWZ surged on optimism that President Dilma Rousseff will finally be removed from office and that a new administration may steer the economy toward growth. Brazilian markets strengthened on hopes that acting President Michel Temer, who will remain as the country’s leader if the Senate decides to impeach Rousseff, will be to renew economic growth and damp corruption that has long plagued the Brazilian economy.

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