This Week in Emerging Market Volatility – 2/14/2014

The emerging market sector was a space that was not expected to do well in 2014.  So far the iShares MSCI Emerging Markets ETF (EEM – 39.66) and the iShares MSCI Brazil Capped ETN (EWZ – 40.64) have lived up to these expectations with EEM down 5% and EWZ down 9%.   This past week EEM managed to put up a gain of 2.40% which kept pace with the S&P 500, but when all was said and done EWZ was unchanged.   The divergent performance of EEM and EWZ showed up in their respective volatility indexes at VXEEM was down over 9% and VXEWZ rose 2.61%.

VXEWZ VXEEM