AZUL - EWZ: 2 Reasons Why I Don't Own This ETF
2025-05-30 05:34:33 ET
Summary
- iShares MSCI Brazil ETF underperforms its top holdings due to index concentration and inclusion of underperforming stocks, making it less attractive long-term.
- Stock picking in Brazil offers better risk/reward by focusing on quality companies and avoiding structurally weak or overvalued names.
- I rate EWZ as 'hold'—it's practical for basic EM exposure, but direct stock selection is preferable for those familiar with the market.
I believe that ETF investing is very useful for many investors, as it removes complexity, increases diversification, and is often efficient in terms of expenses and even taxes. In Brazil, I am also optimistic about this industry. There is still a lot of room for growth and new ETFs to emerge. The level of maturity is completely different when compared to the US....
EWZ: 2 Reasons Why I Don't Own This ETF