Largest Brazil ETF Tumbled 15% in May

“Valuations in Brazil may be attractive after its big bear swing, but not attractive enough to outweigh the volatile backdrop,” according to Barron’s.

EWZ resides nearly 16% below its 200-day moving average. Investors have added $104.45 million to the fund since the start of the current quarter. Still, political volatility looms large for Brazilian assets, a scenario that could be heightened because the front-runner in the upcoming national election is drawing comparisons to U.S. President Donald Trump.

“The tentative front-runner, Jair Bolsonaro, has been dubbed the Trump of the Tropics. Like the U.S. prototype, he is more consistent in his strident reactionary emotional tone than on any concrete economic policies,” reports Barron’s.

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