EWJ VS EWZ
4 min read
By Ron Koren, ETF Insider

EWJ VS EWZ

Exchange-Traded Funds (ETFs) have revolutionized the investment world, offering diversified exposure across various sectors and asset classes. In this article, we will conduct a thorough comparison between two popular ETFs: EWJ (iShares MSCI Japan ETF) and EWZ (iShares MSCI Brazil ETF). We'll delve into a range of critical aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

EWJ Vs EWZ: Overview

EWJ and EWZ are two ETFs that provide distinct exposure to different international markets. EWJ focuses on tracking the performance of Japanese equities, while EWZ concentrates on the Brazilian market. Understanding these differences in geographic exposure is crucial for investors seeking to diversify their portfolios across global economies.

EWJ Vs EWZ: Sectors and Top Holdings

The EWJ ETF is designed to mirror the performance of various sectors within the Japanese economy. Its top holdings include well-established companies like Toyota, Sony, and SoftBank. On the other hand, EWZ's holdings comprise prominent Brazilian companies such as Petrobras, Vale, and Itau Unibanco. Evaluating the sectors and top holdings of these ETFs is essential for assessing their potential risks and returns.

EWJ  overlap EWJ VS EWZEWJ overlap EWJ VS EWZ

EWJ Vs EWZ: Capitalization and Strategy

EWJ boasts a substantial asset under management (AUM) due to its popularity among investors looking for exposure to Japanese equities. The ETF's strategy is centered around replicating the MSCI Japan Index. Conversely, EWZ's investment approach revolves around the MSCI Brazil 25/50 Index, focusing on Brazilian companies' performance. Investors should weigh these varying capitalizations and strategies to align their investments with their goals.

EWJ Vs EWZ: Tracking and Exposure

EWJ aims to provide investors with exposure to the performance of Japanese stocks. Its tracking mechanism involves replicating the MSCI Japan Index, offering a comprehensive representation of the Japanese equity market. Meanwhile, EWZ tracks the MSCI Brazil 25/50 Index, providing exposure to Brazilian equities across various sectors. Distinguishing the tracking and exposure methods aids investors in selecting the appropriate ETF based on their geographical preferences.

Conclusion

EWJ and EWZ offer investors unique opportunities to gain exposure to different international markets: Japan and Brazil, respectively. Analyzing their sectors, top holdings, capitalization, strategies, tracking methods, and exposure is crucial for making informed investment decisions. For those interested in exploring deeper insights into these ETFs and other financial instruments, ETF Insider presents an ideal tool. With its user-friendly app, investors can access a wealth of information including holdings, correlations, overlaps, and more.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.

Sources:

https://www.ishares.com/us EWJ ETF issuer
https://www.ishares.com/us/products/239665/ishares-msci-japan-etf EWJ ETF official page

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FAQ

  • Why is EWJ better than EWZ?

    EWJ may be considered better than EWZ for some investors due to its specific focus, offering diversification.

  • Does EWZ beat EWJ?

    EWZ's performance relative to EWJ will vary over time, depending on market conditions.

  • Should I invest in EWJ or EWZ?

    The choice between EWJ and EWZ should align with your investment goals, risk tolerance, and desired exposure.

  • Are EWJ and EWZ good investments?

    Both EWJ and EWZ can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between EWJ and EWZ?

    The correlation between EWJ and EWZ can vary over time, reflecting differences in performance.