Transparency International gave Brazil a 2014 corruption score of 43, far worse than the 73 earned by Chile.

“An ongoing bribery investigation centered around Petrobras was yet another pain point. In recent weeks, the scandal has ensnared more politicians with allegations now reaching senior members of Congress. As the Petrobras scandal worsens, both stocks and bonds have sold off, with 10-year rates climbing back up to record levels,” according to Koesterich.

Earlier this month, J.P. Morgan downgraded its view on Brazil’s sovereign debt to underweight from market weight while lowering its rating on Petrobras bonds to neutral.

Investors have pulled $267 million from EWZ less, nearly $200 million less than has been pulled from the iShares MSCI Mexico Capped ETF (NYSEArca: EWW).

iShares MSCI Brazil Capped ETF