iShares MSCI Brazil Small-Cap ETF (EWZS) is up 123.5%
EWZS offers access to Brazil’s small-cap companies. The weighted average market cap of the 57-holding portfolio is $1.2 billion.
The fund’s market-cap-weighted selection and weighting schemes make it a good representation of the Brazil small-cap universe, but the fund still shows a strong tilt toward a handful of sectors. Consumer discretionary is the biggest allocation, at about 20%. Combined with industrials, consumer staples, utilities and financials, these five sectors represent some 90% of the mix.
The fund also allocates heavily to micro-cap names—almost 30% of the portfolio.
EWZS costs 0.63% in expense ratio, and has $58 million in assets. The fund is the small-cap version of the largest Brazil ETF in the market today, the iShares MSCI Brazil (EWZ), and one of only two Brazil small-cap ETFs in the U.S. market today.
VanEck Vectors Brazil Small-Cap ETF (BRF) is up 110.6%
BRF is the other Brazil small-cap ETF in the market, competing directly with EWZS. The fund offers similar exposure, but it doesn’t allocate as heavily to microcaps.
BRF is more liquid than EWZS. The fund trades nearly $1 million a day, on average, with an average spread of 0.30%. Compare that with $700,000 in average daily volume at an average spread of 0.47% for EWZS. The wider the spread, the more costly a fund is to trade.
Consumer discretionary is the fund’s biggest sector allocation, at 24%. Nearly three-quarters of the portfolio is tied to five sectors, but consumer staples is not in that mix. Consumer discretionary, financials, utilities, industrials and health care are the leaders.
BRF costs 0.60% in expense ratio and has $103 million in assets.