Brazil and Turkey ETFs were among the worst performing funds last week as idiosyncratic issues hit the two countries.

In Turkey, the lira dropped 0.8% on 12 April after the government’s reform plan to tackle the country’s economic problems did little to calm investor nerves. The plan, released on 10 April, featured a $4.9bn cash injection into the country’s state banks however, this caused Turkish stocks to fall 0.7%.

As a result, the HSBC MSCI Turkey UCITS ETF (HTRY) was the worst performing ETF last week, according to data from Ultumus, falling 5.6%. Lyxor and iShares Turkey ETFs completed the top three.

Meanwhile, Brazil ETFs were impacted after state oil company Petrobas dropped 7% on 12 April in response to the cancellation of a diesel price hike caused by President Jair Bolsonaro’s call for “fair” oil prices. Investors appear to be concerned of political interference in the oil company.

The Amundi MSCI Brazil ETF (BRZ) and the Lyxor MSCI Brazil UCITS ETF (RIO) both dropped 4.5% over the week.

Despite this, Mary-Therese Barton, head of emerging market debt at Pictet Asset Management, commented: “Among EM countries, we find Brazil particularly attractive. There, the new government’s reform agenda has helped to turn the focus back onto the country’s positive fundamentals.”

Top 10 worst performing ETFs (08-12 April)

HSBC MSCI TURKEY UCITS ETF (HTRY)-5.6%
Lyxor UCITS ETF PEA Turkey (DJ Turkey Titans 20) (ETUR)-5.6%
Lyxor MSCI Turkey UCITS ETF (TUR)-5.6%
iShares MSCI Turkey UCITS ETF USD (Dist) (ITKY)-5.6%
Xtrackers MSCI Japan UCITS ETF (XMUJ)-5%
Xtrackers USD Emerging Markets Bond Quality Weighted UCITS ETF (XQUA)-4.9%
Xtrackers II USD Asia ex Japan Corporate Bond UCITS ETF (ALQD)-4.7%
Amundi MSCI Brazil ETF (BRZ)-4.5%
Lyxor MSCI Brazil UCITS ETF (RIO)-4.5%
Lyxor Brazil Pea UCITS ETF (PRIO)-4.5%

Source: Ultumus