VEA VS FXI
4 min read
By Ron Koren, ETF Insider

VEA VS FXI

Exchange-Traded Funds (ETFs) have become an integral part of modern investment strategies, offering diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: VWO (Vanguard FTSE Emerging Markets ETF) and EWZ (iShares MSCI Brazil ETF). By analyzing key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure, we aim to provide investors with a comprehensive understanding of these financial instruments.

VWO Vs EWZ: Overview

VWO and EWZ represent distinct investment opportunities within the realm of emerging markets. VWO, managed by Vanguard, focuses on providing investors with exposure to a broad range of emerging economies, while EWZ, managed by iShares, hones in on the Brazilian market. By delving into the nuances of these ETFs, we can uncover their unique characteristics and potential benefits for investors.

VWO Vs EWZ: Sectors and Top Holdings

The VWO ETF offers exposure to a diversified basket of emerging market sectors, including technology, finance, consumer goods, and more. Its top holdings typically consist of leading companies from various countries. On the other hand, EWZ concentrates its holdings exclusively in Brazilian equities, encompassing sectors such as commodities, banking, and energy. By analyzing the sectors and top holdings, investors can make informed decisions based on their desired exposure to specific industries.

VEA  overlap VEA VS FXIVEA overlap VEA VS FXI

VWO Vs EWZ: Capitalization and Strategy

VWO boasts a substantial asset under management (AUM), highlighting its popularity among investors seeking exposure to emerging markets. Its investment strategy involves tracking the performance of the FTSE Emerging Index, which covers a wide range of countries and sectors. EWZ's strategy, however, centers on mirroring the MSCI Brazil 25/50 Index, making it a more targeted investment in the Brazilian market. The differing capitalization and strategies of these ETFs underscore the importance of aligning investments with individual risk tolerance and financial goals.

VWO Vs EWZ: Tracking and Exposure

VWO and EWZ diverge in their tracking methodologies and exposure. VWO aims to replicate the performance of its underlying index by investing in a diversified portfolio of emerging market securities. EWZ, in contrast, seeks to mirror the performance of Brazilian equities listed on the MSCI Brazil 25/50 Index. Understanding the tracking methods and exposure strategies is crucial for investors seeking to capitalize on emerging market opportunities while managing associated risks.

Conclusion

VWO and EWZ offer distinct pathways for investors to tap into the potential of emerging markets. Each ETF comes with its own set of characteristics, risks, and opportunities. For investors who want to delve deeper into the holdings, correlations, overlaps, and other insights, ETF Insider provides a valuable tool. This user-friendly app offers a comprehensive view of these financial instruments, helping investors make more informed decisions in line with their investment goals.

Disclaimer: This article is intended for informational purposes only and does not provide any investment advisory services. It is essential to conduct thorough research and consult with financial professionals before making any investment decisions.

Sources:
Vanguard FTSE Emerging Markets ETF (VWO) Overview. Vanguard.
iShares MSCI Brazil ETF (EWZ) Overview. iShares.
FTSE Emerging Index. FTSE Russell.
MSCI Brazil 25/50 Index. MSCI.

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FAQ

  • Why is VEA better than FXI?

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

  • Does FXI beat VEA?

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

  • Should I invest in VEA or FXI?

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

  • Are VEA and FXI good investments?

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

  • What is the correlation between VEA and FXI?

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