The iShares MSCI Emerging Markets ETF (EEM – 42.26) lost about 3% last week while the iShares MSCI Brazil Capped Index ETF (EWZ – 54.58) was actually up slightly on the week. That is where the difference between the two ends. Both VXEEM and VXEWZ were both up significantly last week. VXEEM rose 17% while VXEEM was up over 14%. Both these indexes have taken their lead from the US markets for most of the year and this week it appears part of the influence on these two indexes came from our markets. However, the divergence in EEM and EWZ performance may be attributed to China which had news late in the week that was part of the cause of pressure on the US markets. Needless to say there is no China weighting in the EWZ, although 17% of Brazil exports do make their way to China and 14.5% of imported goods in Brazil come from China, hence the divergence in performance between EEM and EWZ.