So fragile has the Brazilian economy become that there is growing fear the country suffer a sovereign rating downgrade. Last month, Moody’s pared its outlook on Brazilian sovereign bonds to stable from positive. A move to junk status for Brazil appears unlikely, but a downgrade to a lower investment-grade rating cannot be ruled out at this juncture. [Bond ETFs Vulnerable After Moody’s Changes Brazil View]

EWZ is not the only offender in the Brazil ETF bunch. The Market Vectors Brazil Small-Cap ETF (NYSEArca: BRF) is flirting with its first close  below $30 since late August while the Global X Brazil Financials ETF (NYSEArca: BRAF) has plunged 11% in the past month.

iShares MSCI Brazil Capped ETF