For its part, S&P is reversing course after upwardly revising its outlook on Brazilian debt to stable from negative last year. Amid a corruption scandal at Petrobras (NYSE: PBR), Brazil’s state-run oil company and one of EWZ’s largest holdings, high interest rates, a rising current account deficit and slack economic growth, investors have grown impatient with EWZ and Brazilian stocks. [Bail or Buy With Brazil ETFs]
Investors have pulled nearly $813 million from EWZ this year, the worst outflows from any of the five major single-country ETFs tracking Latin American nations.
iShares MSCI Brazil Capped ETF