VEA VS EWZ
3 min read
By Ron Koren, ETF Insider

VEA VS EWZ

Exchange-Traded Funds (ETFs) have revolutionized the investment world, offering investors diversified exposure to various sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: FXI (iShares China Large-Cap ETF) and EWZ (iShares MSCI Brazil ETF). We'll delve into key aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

FXI Vs EWZ: Overview

FXI and EWZ are both ETFs that offer exposure to different emerging markets—China and Brazil, respectively. FXI focuses on China's largest publicly traded companies, while EWZ tracks the performance of Brazilian stocks. Understanding the differences in these ETFs' target regions can help investors make informed decisions about their portfolio allocations.

FXI Vs EWZ: Sectors and Top Holdings

FXI's portfolio primarily consists of companies from sectors like technology, financials, and consumer discretionary. On the other hand, EWZ's holdings are concentrated in sectors such as financials, materials, and energy. Examining the sectors and top holdings provides insight into the industries each ETF is exposed to, aiding investors in assessing potential risks and rewards.

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FXI Vs EWZ: Capitalization and Strategy

FXI boasts a substantial asset under management (AUM) due to its focus on China's large-cap companies. In contrast, EWZ is designed to capture the performance of the Brazilian equity market. The difference in capitalization and strategy between these ETFs can influence their potential for growth and the level of risk associated with them.

FXI Vs EWZ: Tracking and Exposure

FXI tracks an index composed of China's biggest publicly traded companies, offering investors exposure to the broader Chinese market. EWZ, on the other hand, replicates the MSCI Brazil 25/50 Index, providing access to Brazilian equities. Understanding the tracking methodologies and geographical exposures enables investors to align these ETFs with their investment goals and risk tolerance.

Conclusion

FXI and EWZ represent distinct opportunities for investors seeking exposure to emerging markets—China and Brazil. To gain a deeper understanding of these ETFs' holdings, correlations, overlaps, and other insights, investors can turn to ETF Insider, an invaluable tool. With its user-friendly app, ETF Insider provides comprehensive information on these and various other financial instruments, aiding investors in making well-informed decisions for their portfolios.

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

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FAQ

  • Why is VEA better than EWZ?

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

  • Does EWZ beat VEA?

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

  • Should I invest in VEA or EWZ?

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

  • Are VEA and EWZ good investments?

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

  • What is the correlation between VEA and EWZ?

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