Daily Movers: Brazil EWZ Fell 3.4%

Tuesday reflected EM bifurcation. Brazil EWZ fell 3.44% as country exposures diverged. China MCHI fell 2.30%, Bitcoin IBIT dropped 0.80%, Real Estate VNQ lost 0.75%, and Emerging Markets Bond EMB edged down 0.01%. South Korea EWY rose 2.53% against a 3M downtrend, Taiwan EWT gained 1.72%, Long Treasuries TLT added 0.16%, and Infrastructure PAVE climbed 0.69%.

Equity: North Asia led, Brazil and China lagged

Movers

Leaders: South Korea EWY +2.53% (3M: -13.3%), Taiwan EWT +1.72% (3M: +7.0%)

Laggards: Brazil EWZ -3.44% (3M: -11.3%), China MCHI -2.30% (3M: -4.6%)

3M Leaderboard

Strong: Healthcare XLV +18.0%, Financials XLF +13.3%, Dividend Quality SCHD +8.8%

Weak: South Korea EWY -13.3%, Brazil EWZ -11.3%, China MCHI -4.6%

Fixed Income: Treasury duration led, inflation-linked debt lagged

Movers

Leaders: Long Treasuries TLT +0.16% (3M: -2.8%), 7-10yr Treasuries IEF +0.12% (3M: -0.9%)

Laggards: Short TIPS VTIP -0.02% (3M: -0.2%), EM Sovereign Bonds EMB -0.01% (3M: +0.1%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +1.0%, High Yield HYG +0.9%, Short Corporate VCSH +0.4%

Weak: Long Treasuries TLT -2.8%, Preferred Stock PFF -2.1%, Investment Grade Credit LQD -1.6%

Specialty: Infrastructure and clean energy led, crypto and real estate lagged

Movers

Leaders: Infrastructure PAVE +0.69% (3M: +3.1%), Clean Energy ICLN +0.66% (3M: -16.0%)

Laggards: Bitcoin Trust IBIT -0.80% (3M: -22.7%), Real Estate VNQ -0.75% (3M: +0.6%)

3M Leaderboard

Strong: Biotechnology IBB +17.5%, Min Volatility USMV +7.4%, Covered Calls Nasdaq JEPQ +3.1%

Weak: Bitcoin Trust IBIT -22.7%, Ethereum Trust ETHA -19.8%, Clean Energy ICLN -16.0%

Cross-Asset Read

EM bifurcation framed the session, with Asian country exposure higher while Brazil and China fell, and the spillover split long duration from crypto and real estate.
The 3M structure centers on defensives and quality, with XLV at +18.0%, XLF at +13.3%, SCHD at +8.8%, JNK at +1.0%, HYG at +0.9%, and IBB at +17.5%; Tuesday extended EWT’s +7.0% uptrend and EWZ’s -11.3% and IBIT’s -22.7% downtrends, while EWY rose against a 3M downtrend and TLT rose against a 3M downtrend.
Volatility also splits by cohort: DVY, SCHD, SDY, and FTLS sit in expansion, while EFA, EWG, EWU, AGG, BNDX, EMB, ETHA, IBB, and IBIT sit in compression, a 4-to-9 split that leaves the cross-asset regime selective and bifurcated.

Romain Gandon
CEO, Quantlake

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results.