Brazilian small-cap stocks have suffered recently and face further risks amid new trade war tensions, but they are very undervalued. Brazil's economic growth is expected to fall below 3% due to higher interest rates, trade war risks, and global macro tensions. The Central Bank may cut interest rates later this year to counteract inflation and a weaker currency.
EWZS's poor performance is attributable to the depreciation of the Brazilian Real. The US-China trade war can boost Brazil's exports to China and help the BRL stabilize. Further interest rate hikes are expected in Brazil due to the rising government debt. Monetary tightening can also support the BRL.
Investing in Brazil has been challenging due to US tech stock dominance, but long-term potential exists. Consider investing in small-cap Brazilian stocks like EWZS to capture domestic growth and economic activity. EWZS offers exposure to various industries in Brazil, with a focus on industrials and consumer discretionary sectors.
![]() EWZS 11 months ago Paid | Semi Annual | $0.21 Per Share |
![]() EWZS 20 Dec 2023 Paid | Semi Annual | $0.25 Per Share |
![]() EWZS 7 Jun 2023 Paid | Semi Annual | $0.17 Per Share |
![]() EWZS 13 Dec 2022 Paid | Semi Annual | $0.32 Per Share |
![]() EWZS 9 Jun 2022 Paid | Semi Annual | $0.22 Per Share |
![]() EWZS 11 months ago Paid | Semi Annual | $0.21 Per Share |
![]() EWZS 20 Dec 2023 Paid | Semi Annual | $0.25 Per Share |
![]() EWZS 7 Jun 2023 Paid | Semi Annual | $0.17 Per Share |
![]() EWZS 13 Dec 2022 Paid | Semi Annual | $0.32 Per Share |
![]() EWZS 9 Jun 2022 Paid | Semi Annual | $0.22 Per Share |
NASDAQ (NMS) Exchange | US Country |
The company in question operates a specialized investment fund focused on capturing the growth and performance of small capitalization companies in Brazil. By investing a minimum of 80% of its assets in the securities that compose its underlying index, along with investments that share similar economic characteristics, the company seeks to mirror the performance of this segment of the Brazilian market. The underlying index is characterized by its free float-adjusted market capitalization weighting, targeting the most liquid and accessible segments of the small-cap market in Brazil. This strategic approach reflects the fund's objective to provide investors with a diversified portfolio that taps into the potential of small-cap companies, offering a balance between risk and return that is geared towards those looking to invest specifically in the Brazilian market.
The fund invests primarily in the component securities of its underlying index, which includes a diversified pool of small capitalization companies listed on Brazilian stock exchanges. This approach allows the fund to directly capture the market dynamics and performance of its targeted segment, providing an investment product that closely follows the economic health and growth of small-cap enterprises in Brazil.
In addition to direct investments in component securities, the fund also allocates assets to investments that have economic characteristics substantially identical to those of the securities in the underlying index. This may include derivatives or other financial instruments that mimic the performance of the index components. This strategy further ensures that the fund’s portfolio aligns with the performance of the small capitalization market segment in Brazil, enhancing the potential for returns that are reflective of this specific market dynamic.
By employing a free float-adjusted market capitalization-weighted index strategy, the fund prioritizes investments in companies based on their market capitalization while adjusting for the availability of shares to the public (free float). This approach ensures that the fund’s investment focus remains on the most liquid and sizable components within the small-cap segment, potentially reducing liquidity risk and improving the scalability of investments.