iShares MSCI Brazil ETF (EWZ): Complete Beginner's Guide

What is iShares MSCI Brazil ETF?

EWZ is the most widely traded ETF for investing in Brazilian stocks, holding major companies in banking, mining, oil, and agriculture. It provides concentrated exposure to Latin America's largest economy which is rich in natural resources and commodities. This fund tends to be more volatile than developed market ETFs but offers higher dividend yields and commodity-linked returns.

EWZ is managed by BlackRock and has been available since 2000. With $4.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.59%, which means for every $10,000 you invest, you pay approximately $59 per year in management fees.

EWZ at a Glance — Key Metrics

Top 10 Holdings in EWZ

EWZ holds 55 different securities. Here are the largest positions that make up the core of this fund:

EWZ Performance History

Here's how EWZ has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

Beginner Suitability Score: 8/10

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

EWZ scores 8/10 because it has very low fees, can be more volatile than the broader market, focuses on 55 selected holdings, and has been available since 2000, giving it a proven track record.

How to Buy EWZ — Step by Step

1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
3. Search for "EWZ" — Use the search bar in your brokerage platform to find iShares MSCI Brazil ETF.
4. Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
5. Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

EWZ Sector Allocation

Here's how EWZ distributes its investments across different sectors of the economy:

Dollar Cost Averaging Into EWZ

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With EWZ's expense ratio of 0.59%, a $10,000 investment would lose approximately $4,837 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.

Pros and Cons of EWZ

Frequently Asked Questions