EWZS: A Unique Small-Cap Way To Play Brazil

seekingalpha08-22

Bambu Productions/DigitalVision via Getty Images Investing in Brazil has been incredibly challenging over the last decade. Despite low valuations and a strong demographic base, there just hasn’t been ...

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Despite low valuations and a strong demographic base, there just hasn’t been ...</p>\n\n<a href=\"https://seekingalpha.com/article/4716259-ewzs-a-unique-small-cap-way-to-play-brazil\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>EWZS: A Unique Small-Cap Way To Play Brazil</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEWZS: A Unique Small-Cap Way To Play Brazil\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-22 01:37 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4716259-ewzs-a-unique-small-cap-way-to-play-brazil><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Bambu Productions/DigitalVision via Getty Images Investing in Brazil has been incredibly challenging over the last decade. Despite low valuations and a strong demographic base, there just hasn’t been ...</p>\n\n<a href=\"https://seekingalpha.com/article/4716259-ewzs-a-unique-small-cap-way-to-play-brazil\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EWZ","symbol_name":"巴西ETF-iShares MSCI","start_time":0,"source_url":"https://seekingalpha.com/article/4716259-ewzs-a-unique-small-cap-way-to-play-brazil","article_id":"2461871095","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/695386203/image_695386203.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2461871095","pubTimestamp":1724261843,"columns":[],"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Bambu Productions/DigitalVision via Getty Images Investing in Brazil has been incredibly challenging over the last decade. Despite low valuations and a strong demographic base, there just hasn’t been ","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"EWZ":"巴西ETF-iShares MSCI","EWZS":"MSCI巴西小盘股ETF-iShares","BRAZ":"Global X Brazil Active ETF","BK4585":"ETF&股票定投概念","BK4588":"碎股","BK4550":"红杉资本持仓","FDN":"First Trust Dow Jones Internet I"},"translate_title":"EWZS：玩巴西的独特小盘股方式","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BRAZ":1,"EWZ":1,"EWZS":1,"FDN":0.79},"content_text":"Bambu Productions/DigitalVision via Getty Images Investing in Brazil has been incredibly challenging over the last decade. Despite low valuations and a strong demographic base, there just hasn’t been any momentum broadly as investors largely chased US tech stocks over the last decade. At some point this will change, and despite some concerns over political stability and pro-business policies in the country, I do think investing in Brazil can make sense in the long-run. The question then becomes how to play it. One way that might work is by tilting towards small-cap stocks in the country to capture domestic economic activity and on-the-ground growth. If you’re a fan of small-cap investing and Brazil within that context, you may want to consider the Shares MSCI Brazil Small-Cap ETF (NASDAQ:EWZS). EWZS tracks the MSCI Brazil Small Cap Index. This index includes various small-cap Brazilian stocks, giving investors a chance to tap into a market sector that global investors often miss. EWZS hit the market on September 28, 2010 and is relatively small at just $135 million in assets under management. By zeroing in on small-cap firms, the hope is that there’s a lot of upside potential and room for these equities to run. A Look At The Holdings At the core of the EWZS is a selected group of small-cap Brazilian companies from different industries. The fund had 82 individual stock positions, with the top position making up nearly 4 times the weighting of the next smallest position.   ishares.com What do these companies do? Embraer S.A. is a leading Brazilian aerospace company known for its advanced aircraft production. Allos S.A. develops and manages homes and business properties. 3R Petroleum Oleo e Gas S.A. looks for and produces oil and gas. Multiplan Empreendimentos Imobiliarios S.A. is another real estate company that develops and manages shopping centers and mixed-use complexes. And Azzas S.A. is a consumer discretionary company that sells and distributes clothes and accessories. Sector Composition There’s an interesting mix here in this fund, in that the majority of portfolio comes from the Industrials sector at 27.5%. Consumer Discretionary comes in second at 20% and Utilities third.   ishares.com Notable here is that Tech makes up just 1.45% of the portfolio. If you’re looking for an anti-US Tech play, this is certainly it. And if your bet is that Brazil’s young population will continue to grow and spend, then the Consumer Discretionary allocation is something you definitely want exposure to more generally. Peer Comparison EWZS is a good choice for investors who want to put money into Brazilian small-cap stocks, but it's important to see how it stacks up against other similar options in the market. One key competitor is the BNY Mellon Brazil Small Cap ETF (BRAZ), which also follows the performance of small-cap Brazilian companies. When we look at the price ratio of EWZS to BRAZ, we find that the two funds are largely in line with each other (BRAZ has a much shorter history than EWZS). No clear winner from a relative momentum perspective.   stockcharts.com Also, you might want to think about the iShares MSCI Brazil ETF (EWZ). It's like a big brother to EWZS in that it focuses on large companies. If you use both EWZ and EWZS together, you can get pretty good full exposure to the entire Brazil marketplace across all sizes. Pros and Cons On the plus side, the fund lets you spread your risk across a part of the Brazilian stock market that many global investors don't look at. Small companies, being quick on their feet and able to grow fast, can be great investments in a growing country like Brazil. What's more, the EWZS's emphasis on small-cap companies matches Brazil's growing entrepreneurial energy and the country's push to encourage new ideas across different industries. As these companies grow and gain ground, people who invest in EWZS might see big gains from their potential to increase in value. On the other hand, it's essential to keep in mind the risks that come with putting money into small-cap companies. These businesses often feel the effects of market ups and downs more, face cash flow problems, and react more to changes in the economy. Also, because EWZS invests in Brazil, investors face risks specific to that country such as political unrest, changes in laws, and shifts in currency values. Also, the Brazilian economy, while showing promise for growth, isn't safe from global economic challenges. Things like changes in commodity prices, trade disputes, and uncertainties in world politics can have a big impact on how Brazilian companies perform, including those in the EWZS's portfolio. Conclusion  The iShares MSCI Brazil Small-Cap ETF gives investors a great chance to get involved in the lively small-cap part of the Brazilian stock market. Small-caps broadly across the globe have underperformed (something I’ve hammered when it comes to US markets for a year) but that cycle will turn eventually, and so too will the cycle favoring Brazil. I think this is a good diversifier and one worth considering in a portfolio overall.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2461871095"}