iShares MSCI Brazil Capped ETF (EWZ): a Must-Have Country Specific Growth Exposure

Latin American stocks have been one of the few emerging markets to have seen strong returns in recent times. Brazil’s economy grew more than expected in Q2 2023 bolstered by increased PMI activity in industry and services, in a boost for president Lula da Silva’s promise to lift living standards in the largest Latin American economy. GDP expanded 0.9 % over the reporting period to the end of June — a slight cool-off from the previous period — but beating a 0.3 % QoQ rise expected.

The iShares MSCI Brazil Capped ETF (EWZ), a simple Brazilian stock index ETF, is no exception, as the fund has significantly outperformed the S&P 500 since the beginning of 2022. The fund offers investors a strong dividend yield of up to 8.8%, extremely cheap valuations and strong momentum.

EWZ Fund’s Basics:

• Investment Manager: BlackRock

• Underlying Index: MSCI Brazil 25/50 Index

• Expense rate: 0.58%

• Dividend Yield: 8.84%

EWZ is a stock index ETF that tracks the MSCI Brazil 25/50 Index. The index invests in the largest and most relevant stocks in Brazil and adheres to some basic inclusion criteria. It is a market capitalization weighted index with a safety cap designed to ensure a minimum level of diversification and comply with regulatory standards.