Highlighting the sensitivity of Brazilian stocks to this election’s polling numbers, Rousseff gaining momentum last month was a prime culprit in EWZ faltering to bear market territory. The reverse was on display Monday when investors embraced the idea of Neves winning, making nine of the day’s top-10 non-leveraged ETFs either Brazil-specific funds or regional ETFs with substantial Brazil exposure.
Silva’s Socialist Party announced Wednesday announced it will throw its support behind Neves. Neves is still looking for the support of Eduardo Campos’ family. Silva replaced Campos atop the Socialist party ticket after the latter died in an August plane crash.
Even with Neves’ momentum, some investors are skittish Rousseff will ultimately emerge victorious. After pouring $908.5 million into EWZ as the ETF slumped during the third quarter, investors have yanked over $293 million from the fund this week.
iShares MSCI Brazil Capped ETF
