Brazil small Cap ETF: straddles for rates rising and currency moving.

BRF is the ETF that tracks small cap Brazilian stock. That is "smaller' not small, as they are still big companies.

Recent surveys are showing that Brazil is set to quite significantly raise interest rates, a move that will definitely impact its currency. Below are some straddles for BRF.

The Brazil Small-Cap ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Brazil Small-Cap Index.
The Index provides exposure to publicly traded small capitalization companies that are domiciled and primarily listed on an exchange in Brazil or that generate at least 50% of their revenues in Brazil. As such, the Fund is subject to the risks of investing in small cap stocks in this country.

Gross Expense Ratio 1.09%
Net Expense Ratio 0.73%

Small Caps:
- the Real Brazil, a concentrated play on domestic investment themes, such as home building and consumer goods.
- Not Dominated by Commodities/Materials as compared to competing products/indices
- Complement Traditional Foreign Investments with small-cap exposure (avg. weighted avg. market cap of MVRIO: $1.4 Billion)
- Pure Play, index constituents must be domiciled and primarily listed on an exchange in Brazil, or generate at least 50% of revenues in Brazil

Holdings:



EWZ BRF Comparison

3-month chart:

Straddles:

These are for January and February: