What Is the EWZS ETF? Returns, Expense Ratio, Holdings and Alternative ETFs Explained
The iShares MSCI Brazil Small-Cap ETF (EWZS) tracks the MSCI Brazil Small Cap Index and concentrates its exposure on small and mid-sized companies. The key difference from the large-cap EWZ lies in portfolio weightings, and investors should also check the dividend schedule, currency exposure and the fee outlook.
SubscribeWhat Is the iShares MSCI Brazil Small-Cap ETF?
This emerging-market equity ETF tracks the MSCI Brazil Small Cap Index and diversifies across small and mid-sized companies in the Brazilian stock market. Unlike large-cap-focused Brazil exposure, it has a heavier weighting in companies with a strong domestic-demand and growth orientation.
It suits satellite emerging-market investors who want broad exposure to the Brazilian market that extends beyond large caps to small and mid caps.
It is a passive (index-tracking) ETF managed by iShares (BlackRock).
How Does the iShares MSCI Brazil Small-Cap ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | MSCI Brazil Small Cap Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Semiannual |
| Dividend Frequency | Semiannual |
| Issuer | iShares (BlackRock) |
| Total Expense Ratio | 0.59% |
The fund holds the constituents of the MSCI Brazil Small Cap Index in proportion to their market capitalization, tracking the performance of Brazilian small and mid-sized companies as a whole. It includes a wide range of domestic-demand, industrial and consumer companies that large-cap ETFs do not capture, providing broad diversification.
- Targeted exposure to Brazilian small and mid caps
- A diversification structure that complements large-cap ETFs
iShares MSCI Brazil Small-Cap ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $319.8M, and the total expense ratio is 0.59% per year.
Compared with EWZ, the large-cap ETF from the same issuer, it carries a larger weighting in small and mid caps, which gives it different volatility and domestic-demand sensitivity characteristics.
iShares MSCI Brazil Small-Cap ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeReturns tend to be highly volatile depending on the Brazilian currency, commodity prices and the interest rate environment. As is typical of emerging-market small caps, the fund repeatedly shows strength in risk-on phases and weakness in risk-off phases.
Fund flows react sensitively to Brazil's economy and the direction of the real. During periods of emerging-market allocation adjustments, flows in and out tend to swing relatively widely given its role as a satellite asset.
iShares MSCI Brazil Small-Cap ETF Strengths and Weaknesses
Its strength is differentiated diversified exposure to Brazilian small and mid caps, while currency, liquidity and concentration risks are cited as weaknesses.
💪 Key Strengths
⚠️ Points to Watch
iShares MSCI Brazil Small-Cap ETF Alternative ETFs and Related Products
EWZ, shown in the table, is the same issuer's Brazil large-cap ETF and the closest direct comparison, while EWZS extends exposure to the small and mid-sized companies that the large-cap fund does not hold. For broader emerging-market diversification, investors may also consider allocating alongside single-country emerging-market ETFs such as INDA for India, MCHI for China and EWT for Taiwan.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 EWT | iShares MSCI Taiwan ETF | $98.27 | -2.4% | $10.6B | 0.59% | 1.03% | +51.1% |
 EWZ | iShares MSCI Brazil ETF | $31.73 | -1.3% | $9.6B | 0.59% | 4.27% | +1.0% |
 INDA | iShares MSCI India ETF | $48.70 | +0.5% | $5.9B | 0.61% | - | -10.2% |
 MCHI | iShares MSCI China ETF | $49.40 | -0.4% | $5.6B | 0.59% | 2.22% | -22.3% |
 FLTW | Franklin FTSE Taiwan ETF | $93.98 | -2.7% | $4.6B | 0.19% | 1.75% | +50.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 SBS | Companhia de Saneamento Basico do Estado de Sao Paulo ADR | 0.08% | $4.42 | -2.2% | $15.5B | 10.2 | 3.24% |
 AUGO | Aura Minerals Inc | 0.04% | $64.11 | -3.2% | $5.4B | 18.2 | 4.45% |
 INTR | Inter & Co Inc | 0.08% | $3.91 | -3.0% | $1.7B | 6.0 | 3.42% |
 PAGS | PagSeguro Digital Ltd | 0.08% | $7.65 | -3.0% | $2.1B | 5.4 | 9.53% |
iShares MSCI Brazil Small-Cap ETF Investor Checkpoints
These are the points to review before investing in EWZS. Because it is concentrated in Brazilian small and mid caps and in a single country, it is wise to check currency exposure, price volatility and its weighting for diversification within your portfolio in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💱 Currency | Impact of real-converted returns | No currency hedge applied |
| 📉 Volatility | Small and mid-cap price and liquidity risk | On the high side |
| 🌎 Diversification Weight | Satellite weighting within the portfolio | Small allocation recommended |
| 💵 Expense Ratio | Cumulative impact over long-term holding | Annual fee applies |
Fluctuations in the real, Brazilian political and policy risk, and the volatility inherent to small and mid caps are the main factors that can amplify short-term losses. Because of its single-country, small-cap concentrated structure, drawdowns may deepen during market shocks.
This is an ETF worth using as a satellite asset specialized in Brazilian small and mid caps. An appropriate approach is to hold core Brazil exposure through the large-cap ETF EWZ and allocate a small portion to EWZS when a complement of small and mid-cap growth is needed.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 18, 2026.
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