Emerging market volatility was led around by the activity in the US markets this past week despite closing down slightly on a week over week basis. The CBOE Emerging Markets ETF Volatility Index (VXEEM – 23.83) reached levels not seen since early July based more on what was going on in the US that in the rest of the world. VXEEM actually lost 5 points between Tuesday and Friday’s closing prices. The more volatile (at least in 2013) CBOE Brazil ETF Volatility Index (VXEWZ – 25.45) was also down slightly on the week despite closing almost four points higher on Tuesday. Like with VIX, the week over week performance does not get the point across about last week’s action.
2013 has been a tough year for the Brazilian market, however, since bottoming out in early August the iShares MSCI Brazil Capped ETF (EWZ – 49.77) is up just over 20%. That’s a very nice return for any bottom feeders that stepped up just a couple months ago.