Brazilian and foreign investors have soured on Rousseff due to the perception of a heavy-handed approach towards Brazil’s state-run companies and practices that are viewed as hostile to foreign investment.
Since Rousseff took office on Jan. 1, 2011, shares of Brazil’s state-controlled oil giant Petrobras (NYSE: PBR) have plunged 63.4%, making it the worst-performing major global oil stock listed on a U.S. exchange over that period.
But as Rousseff’s popularity has slid, shares of Petrobras have surged more than 16% in the past three months. Two Petrobras securities combine for 10.2% of EWZ’s weight. [Petrobras Pushes Brazil ETF Lower]
iShares MSCI Brazil Capped ETF