29.60 +0.01 (0.03%)
After hours: 6:13PM EDT
|Bid||29.40 x 2200|
|Ask||29.80 x 3000|
|Day's Range||27.86 - 30.37|
|52 Week Range||14.27 - 65.25|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||3.41|
|Expense Ratio (net)||1.13%|
Last week's sell-off in U.S. equities is spilling over into the emerging markets space, leaving investors to wonder when the strategy for value-hunting in EM turns into outright avoidance. One ETF that has been benefitting from EM's unceremonious fall from its rise in 2017 is the Direxion Daily MSCI Emerging Markets Bear 3X ETF (EDZ) . EDZ seeks daily investment results that equal 300% of the inverse of the daily performance of the MSCI Emerging Markets IndexSM. The index is a free float-adjusted market capitalization weighted index that is designed to represent the performance of large- and mid-capitalizations securities across the 24 emerging market countries.
The surging Direxion Daily MSCI Brazil Bull 3X ETF (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.
Emerging markets have been turned inside out this year after a spectacular run in 2017, but before an investor looks to dive into the deeply-discounted EM space after Wednesday’s 800-point drop in the Dow Jones Industrial Average, he or she must be still selective and exercise due diligence. Simply selecting a country-specific ETF in emerging markets without the proper research could be akin to catching a falling knife and as such, investors must use caution. While it may be enticing to see the red and buy into the dip, instabilities in certain countries’ financial systems could still leave these markets depressed, and as such, investors should shy away from these parts of the world.
Brazil has been attracting investor attention for several years. It is an emerging market economy, and as a BRIC (Brazil, Russia, India and China) country it has been producing stellar results for investors who are willing to take on some additional risks.
The leveraged and inverse leveraged space has grabbed investors' attention at the start of October in order to magnify returns on quick market turns.
The Latin America-focused Direxion Daily Latin America Bull 3X ETF (LBJ) closed Monday’s trading session up 12.65% thanks to the first round of Brazil’s presidential election, which saw far-right presidential candidate Jair Bolsonaro take the early lead. It was a much-needed boost for LBJ, which has been down over 30% year-to-date, but up 14.17% the past three years. LBJ was hinging upon Brazil's looming presidential election and it responded positively along with the surging Direxion Daily MSCI Brazil Bull 3X ETF (BRZU) , which was up 20.4% by the closing bell.
Brazil ETFs brushed off the broader market weakness and surged back above their trend lines after far-right presidential candidate Jair Bolsonaro took the lead in the first round of votes. Among the best performing ETFs of Monday, the iShares MSCI Brazil Capped ETF (EWZ) increased 6.1% and broke above its long-term resistance at the 200-day simple moving average. The Direxion Daily MSCI Brazil Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the MSCI Brazil 25/50 Index.
Brazil, Latin America's largest economy, holds the first round of national elections on Sunday, Oct. 7 with front runner and far-right politician Jair Bolsonaro currently leading the polls. For example, the Direxion Daily MSCI Brazil Bull 3X ETF (BRZU) entered Friday as the best-performing leveraged bullish exchange traded fund in Direxion's stable on a month-to-date basis. BRZU looks to deliver triple the daily returns of the MSCI Brazil 25/50 Index.
Yesterday, the Direxion Daily MSCI Brazil Bull 3X ETF (BRZU) climbed by 6.26% as voters will head to the polls next week to decide on the country's next president, which will heavily impact the Brazilian markets and its economy on a going-forward basis. In the meantime, companies like Shell and Chevron are funneling capital into Brazil real estate to tap into the country's oil supply. The Brazilian government is reportedly taking in an estimated $1.71 billion from the real estate deals, which will provide the country with the capital injection it needs ahead of an important election.
Few asset classes are as seductive as leveraged exchange-traded funds (ETFs). Other than leveraged ETFs, where else in the fund universe (without using options) can investors make a bet on a simple index, such as the S&P 500 or Nasdaq-100 Index, and amplify those benchmarks’ gains to the tune of 200% or even 300% in a single trading day?
The first round of Brazil's presidential election occurs on Sunday, October 7. Some traders are already positioning for that event as highlighted by recent activity in the Direxion Daily MSCI Brazil Bull 3X Shares (NYSE: BRZU). Leveraged exchange traded funds (ETFs), including BRZU, are designed to be short-term instruments and can be the ideal instruments for risk-tolerant traders to play events such as national elections.
The Direxion Daily MSCI Brazil Bull 3X ETF (BRZU) jumped by 4.54% as of 2:45 p.m. ET as the country's presidential election looms, which will heavily impact the Brazilian markets and its economy moving forward. Brazil's presidential election is a tight one that features five candidates with no clear-cut favorite--Jair Bolsonaro of the Social Liberal Party, Ciro Gomes of the Democratic Labor Party, Geraldo Alckmin of the Brazilian Social Democratic Party and Fernando Haddad of the Workers' Party. "The outcome will be very important from a macro perspective because it will determine the policy path moving forward," said Alberto Ramos, head of Latin American economics at Goldman Sachs.
According to a report by Markit Economics, the final Brazil Services PMI was again in the contraction zone in June after showing some contraction in May. It was 47 in June compared to 49.5 in May. June’s figure was the weakest since November 2017.
According to data by Markit Economics, the final Markit Brazil Manufacturing PMI entered the contraction zone in June. It was 49.8 in June compared to 50.7 in May. June’s PMI didn’t beat the initial market estimate of 50.5. However, it was the first contraction in manufacturing activity since March 2017.
Emerging markets stocks are slumping this year and, at least until recently, Brazilian equities have been among the worst offenders. Brazilian stocks are among Latin America's most volatile. In fact, the MSCI Brazil 25/50 Index is significantly more volatile than the MSCI Emerging Markets Index.
According to a report by Markit Economics, the final Brazil services PMI (purchasing managers’ index) dropped in May as compared to April. It stood at 49.5 in May as compared to 50.0 in April. It was the lowest figure since January 2018 and the first contraction in services activity after four months of expansion.
According to data provided by Markit Economics, the final Markit Brazil manufacturing PMI again fell in May as compared to April. The job growth in the manufacturing sector also rose marginally in the same month. The iShares MSCI Brazil Capped ETF (EWZ), which tracks the performance of Brazil (FBZ), fell 15.8% in May. The Direxion Daily MSCI Brazil Bull 3X ETF (BRZU) fell 42.8% in the same month.
Emerging markets stocks have recently taken their lumps, but Brazilian equities have been among the worst offenders. On Friday, the MSCI Brazil 25/50 Index was sporting a second-quarter loss of 13 percent, ...
According to a report by Markit Economics, the final Brazil services PMI weakened sequentially in April. It was 50 in April compared to 50.4 in March. It was the lowest reading since January.
According to data provided by Markit Economics, the final Markit Brazil manufacturing PMI fell sequentially in April. It was 52.3 in April compared to 53.4 in March. April’s PMI didn’t beat the initial market estimate of 53. It indicated the slowest improvement in factory activity since January.
According to Markit Economics, Brazil’s service PMI (purchasing managers’ index) fell in March, to 50.4 from 52.7 in February. Brazil’s (EWZ) service PMI rose for a second straight month in March, mainly driven by the following factors: Production volume and output improved at a slightly higher rate. New business orders rose to a five-year high and export orders rose strongly. Employment in the service sector continued to decline.
According to Markit Economics, Brazil’s manufacturing PMI (purchasing managers’ index) improved in March, rising to 53.4 from 53.2 in February. It beat the market estimate of 53 and marked the second-fastest improvement since January 2013.