FBZ VS EWZS: A Comprehensive Comparison of ETFs
3 min read
By Beqa Bumbeishvili, ETF Insider

FBZ VS EWZS: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have transformed the investment landscape, offering investors diversified exposure to various sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: FBZ (First Trust Brazil AlphaDEX Fund) and EWZS (iShares MSCI Brazil Small-Cap ETF). We will explore their tickers, full names, issuers, sectors, top holdings, capitalization, strategies, tracking methods, and exposure to provide a comprehensive understanding.

FBZ VS EWZS: Overview

FBZ and EWZS are two ETFs that provide distinct approaches to investing in Brazil's equity market. FBZ employs an AlphaDEX methodology to select and weight stocks, while EWZS focuses on small-cap companies within the Brazilian market. These differing strategies translate into unique risk and return profiles, which we will delve into further.

FBZ VS EWZS: Sectors and Top Holdings

The FBZ ETF encompasses a range of sectors, including Financials, Consumer Discretionary, and Materials. Its top holdings feature companies like Banco Bradesco, B3 S.A. - Brasil, Bolsa, Balcão, and Itau Unibanco Holding. In contrast, EWZS concentrates on small-cap stocks, offering exposure to companies like Cia Hering, Arezzo Industria e Comercio, and Localiza Rent a Car. Understanding the sectors and top holdings aids investors in evaluating the ETFs' underlying portfolios.

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FBZ VS EWZS: Capitalization and Strategies

FBZ's AUM reflects its popularity among investors seeking diversified exposure to Brazilian equities through an active selection process. On the other hand, EWZS narrows its focus to small-cap companies, aiming to capture potential growth within this segment of the Brazilian market. The differences in capitalization and investment strategies contribute to the ETFs' distinct risk-return profiles, influencing investor decisions.

FBZ VS EWZS: Tracking Methods and Exposure

FBZ's AlphaDEX strategy combines quantitative analysis and stock selection based on growth and value factors. EWZS tracks the MSCI Brazil Small Cap Index, offering exposure to a narrower universe of small-cap stocks. Understanding these tracking methodologies and exposure characteristics assists investors in aligning their investment goals with the appropriate ETF.

Conclusion

FBZ and EWZS represent two distinct ways to access Brazil's equity market, each catering to different investor preferences. For a more comprehensive understanding of their holdings, correlations, overlaps, and valuable insights, ETF Insider offers a user-friendly app that provides in-depth information on these and other financial instruments.

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

Sources:

FBZ ETF issuer
FBZ ETF official page

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