The surging Direxion Daily MSCI Brazil Bull 3X ETF (NYSEArca: BRZU) continued its rise after steep sell-offs in the Dow Jones Industrial Average the last two trading sessions, which left the capital markets in a daze, causing the Dow to lose over 1,300 points. BRZU wasn’t immune to the negative market contagion, but today, the leveraged ETF resumed its upward trajectory, gaining almost 6% as the country readies itself for an important presidential runoff election on October 28.
The first round of the election saw far-right presidential candidate Jair Bolsonaro take the early lead with a better-than-expected 46.7% of the votes last weekend with Fernando Haddad coming in second with 28.5%. Like U.S. President Donald Trump in 2016, Bolsonaro was billed as the wild card candidate who was a departure from political norms.
“I voted for Bolsonaro because I’m tired of politicians being the same,” said Maria Aparecida de Oliveira, a 63-year-old housekeeper. “Even if he is a little crazy, someone needs to bring change.”
Investor interest in Brazil as of late has been evident in the performance of BRZU, which has gained 33% month-to-date. Compared to the Dow the last five days, it’s been a consistent outperformer as evidenced in the chart below: