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Weighing the Risks & Rewards of the Brazil ETF (EWZ) 1.3

EWZ vs S&P 500 index fund: August 2000 – September 2019

Source: https://www.portfoliovisualizer.com/EWZ vs SPY: July 14, 2000 – October 15, 2019

Source: https://www.koyfin.com/home

EWZ vs EEM vs SPY: May 2003- September 2019

EWZ vs EEM vs SPY: April 11, 2003 – October 15, 2019

The iShares MSCI Brazil ETF (EWZ) inception date was on July 10, 2000. Since inception this ETF has outperformed an S&P 500 index fund by 1.26% CAGR. EWZ has also outperformed the iShares MSCI Emerging Markets ETF (EEM) by 2.33% CAGR since May 2003. But this outperformance was not achieved without a lot of risk in the process. If you measure risk by volatility, or standard deviation, you can see in the charts above that EWZ is more than twice as volatile as an S&P 500 fund and more than 60% more volatile than EEM. With so much risk involved, investors should ask themselves if the potential rewards of this single-country emerging market fund is actually worth the risks.

So, what are the potential risks involved with owning the iShares MSCI Brazil ETF (EWZ)?

Some potential rewards of owning the iShares MSCI Brazil ETF (EWZ)

If the iShares MSCI Brazil ETF (EWZ) interests you as an investor, you should get to know some the key facts and characteristics of this fund:

Top 10 Holdings:

Sector Weights

The iShares MSCI Brazil ETF (EWZ) is a single-country emerging market fund. As with most emerging market funds, this ETF carries considerable risks. But for the long-term investor the potential rewards can outweigh these risks. It was my goal to help investors, who are considering investing in Brazil, gain a better grasp of the potential risks and rewards of owning EWZ. As with any investment decision, please consider all your options and perform your own due diligence prior to investing in EWZ.

Thank you for taking time to read this article. If you found it useful, please share it with a friend.

Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator

Previous Deep Value ETF Accumulator articles about the iShares MSCI Brazil ETF (EWZ):

The Brazil ETF, a Risk Worth Taking? (EWZ) 1.2

Is the Brazil ETF Worth the Risk? EWZ 1.1

Disclosure: We currently own shares of EWZ and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform you own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.

I originally published this article on TalkMarkets right here: https://talkmarkets.com/content/etfs/weighing-the-risks–rewards-of-the-brazil-etf-ewz?post=237311

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