Oct. 20, 2014 – Today’s closing price was an all-time daily closing high of 72.83 for the CBOE Brazil ETF Volatility Index (VXEWZ), which reflects the implied volatility of the EWZ ETF.
Futures and options on the VXEWZ Index provide investors with tools to manage exposure to Brazil, the EWZ ETF, and related volatility.
A story today at wsj.com provided these comments about the upcoming election in Brazil —
“President Dilma Rousseff of the leftist Workers Party, or PT, is the preferred candidate of millions of Brazilians who’ve been lifted from poverty thanks to the PT’s social programs. Challenging the incumbent is Aécio Neves, whose Brazilian Social Democracy Party in the 1990s killed hyperinflation and privatized large swaths of the economy. Mr. Neves has pledged to use more austere economic policies to tame Brazil’s sticky inflation and jump-start growth after the nation fell into recession this year. The two are basically tied in the polls just six days ahead of the Oct. 26 vote … “
A story at ETFtrends.com noted that –
“ ‘Weakening foreign demand and a severe, double-digit contraction of business fixed investment may have plunged the Brazilian economy into a technical recession,’ said S&P Capital IQ in a recent research note. The inflation dimension of Brazil’s economic troubles remains particularly thorny …”
The EWZ ETF charts below show a 5-year price chart, and a change in the volatility skew for EWZ this month.
For more information on managing volatility and the 26 volatility indexes at CBOE, please visit www.cboe.com/volatility.