EWZ VS BZQ: A Comprehensive Comparison of ETFs
4 min read
By Ron Koren, ETF Insider

EWZ VS BZQ: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have transformed the investment landscape by providing diversified exposure to different sectors and markets. In this comprehensive analysis, we will delve into a detailed comparison between two prominent ETFs: EWZ (iShares MSCI Brazil ETF) and BZQ (ProShares UltraShort MSCI Brazil Capped ETF). This article will cover various aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

EWZ VS BZQ: Overview

EWZ and BZQ are two ETFs that offer distinct strategies within the Brazilian market. While EWZ aims to track the MSCI Brazil Index, which includes a broad range of Brazilian companies, BZQ takes a leveraged inverse approach by seeking to provide twice the inverse daily performance of the same index. Understanding these differing strategies is crucial for investors considering exposure to the Brazilian equity market.

EWZ VS BZQ: Sectors and Top Holdings

The EWZ ETF provides exposure to various sectors of the Brazilian economy, including financials, consumer goods, and materials. Its top holdings may include major Brazilian companies like Vale, Itau Unibanco, and Petrobras. In contrast, BZQ takes an inverse approach, aiming to profit from declines in the Brazilian market. The sectors and holdings of these ETFs are reflective of their distinct strategies and goals.

EWZ overlap EWZ VS BZQ: A Comprehensive Comparison of ETFsEWZ overlap EWZ VS BZQ: A Comprehensive Comparison of ETFs

EWZ VS BZQ: Capitalization and Strategy

The EWZ ETF has a substantial asset under management (AUM), highlighting its popularity among investors interested in Brazilian equities. Its strategy is centered on tracking the performance of the Brazilian market. On the other hand, BZQ's strategy involves leveraging and shorting the market, which makes it a tactical tool for investors seeking to profit from short-term declines. Understanding the capitalization and strategy differences is essential for making informed investment decisions.

EWZ VS BZQ: Tracking and Exposure

EWZ aims to closely replicate the performance of the MSCI Brazil Index, providing investors with exposure to Brazilian stocks. BZQ, however, employs a leveraged inverse strategy, seeking to provide twice the inverse daily performance of the same index. This means that BZQ aims to deliver double the opposite return of the Brazilian market's daily movement. Investors must be aware of these tracking and exposure differences, as they can significantly impact returns and risks.

Conclusion

EWZ and BZQ represent unique approaches to investing in the Brazilian equity market. Depending on an investor's perspective on the market's direction, risk tolerance, and investment goals, either of these ETFs may present an opportunity. For a comprehensive exploration of holdings, correlations, overlaps, and insights, the ETF insider app offers an intuitive platform. Through this user-friendly application, investors can gain valuable insights into these and other financial instruments.

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

Sources:

EWZ ETF issuer
EWZ ETF official page

EWZ quote and analysis

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