EWZ VS FBZ: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have redefined the way investors approach the financial markets, offering targeted exposure to specific sectors and asset classes. In this article, we will conduct an in-depth comparison between two distinct ETFs: EWZ (iShares MSCI Brazil ETF) and FBZ (First Trust Brazil AlphaDEX Fund). We'll delve into the nuances of these ETFs, including their tickers, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methodologies, and exposure.

EWZ VS FBZ: Overview

EWZ and FBZ represent two contrasting approaches to investing in the Brazilian market. While EWZ seeks to replicate the performance of the MSCI Brazil 25/50 Index, FBZ employs an AlphaDEX strategy to select and weight stocks from the Nasdaq AlphaDEX Brazil Index. These differing methodologies lead to varying risk-return profiles and potential outcomes for investors.

EWZ VS FBZ: Sectors and Top Holdings

The iShares MSCI Brazil ETF (EWZ) provides exposure to a diverse range of sectors within the Brazilian equity market, including financials, materials, and consumer goods. Its top holdings include well-known Brazilian companies such as Vale S.A., Itau Unibanco Holding S.A., and Banco Bradesco S.A. In contrast, the First Trust Brazil AlphaDEX Fund (FBZ) utilizes a rules-based approach to select stocks from various sectors, potentially resulting in different sector weightings and top holdings.

EWZ overlap EWZ VS FBZ: A Comprehensive Comparison of ETFs

EWZ VS FBZ: Capitalization and Investment Strategy

EWZ boasts a substantial asset under management (AUM), reflecting its popularity among investors seeking exposure to Brazilian equities. Its strategy involves tracking the performance of a widely recognized index. FBZ, on the other hand, employs the AlphaDEX methodology, which combines fundamental and growth factors to construct a portfolio with the potential for enhanced returns. The differences in capitalization and investment strategy influence the risk and potential returns associated with each ETF.

EWZ VS FBZ: Tracking and Exposure

EWZ seeks to provide investors with exposure to a broad spectrum of Brazilian stocks by closely following the MSCI Brazil 25/50 Index. FBZ's approach involves selecting stocks with potentially superior growth and value characteristics from the Nasdaq AlphaDEX Brazil Index. The variation in tracking and exposure methodologies underscores the different ways these ETFs aim to capture returns from the Brazilian market.

Conclusion

EWZ and FBZ exemplify the diverse options available to investors interested in gaining exposure to the Brazilian equity market. To delve deeper into the intricacies of these ETFs, including insights into holdings, correlations, and overlaps, investors can turn to ETF Insider. This user-friendly app offers comprehensive information on a wide range of financial instruments, aiding investors in making informed decisions.

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

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the EWZ iShares MSCI Brazil ETF, access our dedicated page now.

Get started

Try ETF Insider