EWZ: ISHARES MSCI BRAZIL ETF
ETF Education Report: ISHARES MSCI BRAZIL ETF (EWZ)
What this ETF is trying to do
The ISHARES MSCI BRAZIL ETF (ticker: EWZ) is an exchange-traded fund that focuses on companies in Brazil. Instead of buying just one company, this ETF allows investors to own a small piece of many different businesses at once. This specific fund holds 54 different companies.
What the numbers show
When looking at how an ETF performs, it is important to look at two different types of returns: price return and total return.
• Price Return: This only measures how much the share price itself has changed.
• Total Return: This includes both the change in share price *and* any cash payments (distributions) the fund gave to investors.
For EWZ, the numbers show strong growth:
• Year-to-Date (YTD): The price return is approximately 37.05%, while the total return is approximately 38.36%.
• One Year: The price return was approximately 46.75%, and the total return was approximately 53.47%.
• Three Years: The price return was approximately 46.16%, and the total return was approximately 74.13%.
To give you an idea of price movement, the current price is $43.54. The estimated price from roughly one year ago was approximately $29.67.
Income and distribution explanation
Some investors look for "income," which is cash paid out by the fund. EWZ has a distribution yield of approximately 3.36%. This means the cash payments are about 3.36% of the current share price. Over the last 12 months, there were 3 distributions. It is important to remember that a high yield does not guarantee you will make money; it is simply the amount of cash being paid out.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. Some investors worry that high cash payments might cause this. However, for EWZ, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in this fund (note that this is a partial list):
• VALE SA (8.92%)
• ITAU UNIBANCO HOLDING SA (8.41%)
• NU HOLDINGS LTD (8.06%)
• PETROLEO BRASILEIRO SA PETROBRAS PARTICIPATING PREFERRED (7.51%)
• PETROLEO BRASILEIRO SA PETROBRAS (6.96%)
• BANK BRADESCO SA (3.81%)
Pros
• The fund has shown significant total returns over the last one, three, and five years.
• The erosion-risk measurement is considered "good."
Cons
• The distributions are described as "irregular" or "less frequent," meaning they do not happen on a strict, predictable schedule.
Beginner takeaway
When studying EWZ, notice the difference between the price return and the total return. The total return is higher because it includes the cash distributions paid to investors. Always remember that past performance does not predict what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | VALE SA | n/a | 8.92% |
| 2 | ITAU UNIBANCO HOLDING SA PARTICIPATING PREFERRED | n/a | 8.41% |
| 3 | NU HOLDINGS LTD ORDINARY SHARES CLASS A | NU | 8.06% |
| 4 | PETROLEO BRASILEIRO SA PETROBRAS PARTICIPATING PREFERRED | n/a | 7.51% |
| 5 | PETROLEO BRASILEIRO SA PETROBRAS | n/a | 6.96% |
| 6 | BANK BRADESCO SA PARTICIPATING PREFERRED | n/a | 3.81% |
| 7 | B3 SA BRASIL BOLSA BALCAO | n/a | 3.72% |
| 8 | WEG SA | n/a | 3.20% |
| 9 | AXIA ENERGIA | n/a | 3.18% |
| 10 | BANCO BTG PACTUAL S.A. UNITS CONS OF 1 SH ' 2 PFD SHS -A- | n/a | 2.99% |