The iShares MSCI Emerging Markets ETF (EEM – 43.35) paid its first dividend in some time last week. Despite paying out some profits to holders of the fund there was very little movement in EEM volatility as indicated by the CBOE Emerging Markets ETF Volatility Index (VXEEM – 14.91) which finished the week dropping just over 1%.
The CBOE Brazil ETF Volatility Index (VXEWZ – 24.00) was lower by over 4% even though the iShares MSCI Brazil Capped ETF (EWZ – 48.11) finished the week down about 1% after adjusting for a pretty hefty dividend payout.
The curves tell a couple of different stories. The VXEEM curve shift was pretty tame and ‘normal’ while the VXEWZ curve displayed a little bit of a twist. The VXEWZ September futures rose slightly and the curve steepened. It just may be that despite the strong performance out of the Brazilian market in 2014 there are some concerns about that streak continuing into the end of the 3rd quarter.