In 2017, federal police carried out search and arrest warrants throughout the capital in response to O Globo reports on leaked testimony indicating that President Michel Temer approved payoffs to acquire the silence of Eduardo Cunha, the man behind last year’s ouster of former president Dilma Rousseff. Recently, Temer survived an effort to suspend him on corruption allegations.
In addition to the large-cap EWZ, Brazilian small-caps are getting in on the act. The VanEck Vectors Brazil Small-Cap ETF (NYSEArca: BRF) and the iShares MSCI Brazil Small-Cap ETF (NYSEArca: EWZS) are both up more than 10% this year.
Traders who are betting on a quick turnaround could look to the two times leveraged ProShares Ultra MSCI Brazil (NYSEArca: UBR) or the three times leveraged Direxion Daily Brazil Bull 3x Shares (NYSEArca: BRZU).
For more information on the Brazilian markets, visit our Brazil category.