The iShares MSCI Brazil ETF (EWZ) has been one of 2025’s stronger emerging market performers, rallying more than 33% year-to-date. For investors, EWZ offers direct exposure to Latin America’s largest economy, with a portfolio that is heavily weighted towards Brazil’s most influential companies. The fund’s structure tilts toward the financial, energy, and materials sectors, which dominate Brazil’s market and play a significant role in global commodity flows.
While emerging markets can be volatile, Brazil’s unique mix of natural resources, banking strength, and a large consumer base has kept EWZ in the spotlight. This year’s performance has been supported by steady global demand for iron ore and oil, stabilizing interest rates, and improving investor sentiment toward emerging economies. Brazil’s central bank has also been ahead of the curve in managing inflation, which has provided some cushion for domestic equities.
For long-term investors, EWZ offers a one-stop way to participate in Brazil’s growth story. Whether it’s through financial innovation in companies like Nu Holdings, resource exports from Vale and Petrobras, or industrial growth through WEG and Embraer, the ETF captures the broad drivers of Brazil’s economy in a single trade.
1. Nu Holdings Ltd (NU)
Nu Holdings, better known as Nubank, is EWZ’s largest holding, accounting for 12% of the portfolio. A fintech giant that began as a digital credit card company, Nubank has rapidly expanded into one of Latin America’s leading digital banks, serving over 100 million customers across Brazil, Mexico, and Colombia. Its disruptive approach, low fees, user-friendly apps, and financial inclusion for underserved populations have made it a darling of growth investors.
For EWZ, Nubank provides exposure to Brazil’s rapidly evolving financial sector. Unlike traditional banks, Nubank leans heavily on technology, data-driven lending, and product cross-selling. The company has successfully expanded into personal loans, insurance, investments, and even international markets, positioning itself as more than just a challenger bank. Its growth trajectory continues to attract global capital and set benchmarks for fintech innovation worldwide.
Of course, Nubank trades more like a growth stock than a traditional bank. Valuations can swing with market sentiment, and profitability remains a developing story. But its massive customer base and ability to disrupt entrenched banking incumbents make it a key driver of EWZ’s growth exposure, and a name that investors are watching closely as it scales across Latin America.
2. Vale S.A. (VALE3)
Vale, Brazil’s mining champion, is EWZ’s second-largest holding, with a weight of just over 9%. As one of the world’s largest producers of iron ore and nickel, Vale plays a central role in global commodity markets, particularly as a supplier to China. Its fortunes often move in tandem with global construction demand and steel production, making it a cyclical but critical component of Brazil’s economy.
This year, Vale has benefited from resilient Chinese demand for raw materials, coupled with supply concerns elsewhere in the world. Iron ore prices have remained relatively firm, helping Vale generate strong free cash flow and shareholder returns. At the same time, its nickel and copper operations provide exposure to metals critical for the energy transition, including EV batteries and renewable energy infrastructure.
For EWZ investors, Vale provides a direct exposure to global industrial cycles and commodity pricing. While its revenue can be volatile, its scale, cost advantage, and strategic role in energy transition metals make it an essential holding. As the world pivots toward electrification, Vale’s role as a nickel and copper supplier could become just as important as its traditional iron ore dominance.
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3. Itau Unibanco (ITUB4)
Itaú Unibanco, Brazil’s largest private bank, carries 8.8% weight in EWZ, rounding out the top three holdings. Unlike Nubank’s disruptive model, Itaú represents the established backbone of Brazil’s financial system. With millions of retail, corporate, and wealth management clients, Itaú has a long history of steady earnings, strong capital ratios, and resilience through Brazil’s economic cycles.
In 2025, Itaú has benefited from stabilizing interest rates and solid loan growth, particularly in mortgages and corporate lending. Its wealth management and investment banking units also provide diversification, while digital transformation efforts help it compete with fintech challengers like Nubank. For investors, Itaú represents stability in a volatile market, a blue-chip financial institution with consistent dividend payouts.
For EWZ, Itaú balances the growth potential of fintech with the steady profitability of traditional banking. Its scale, trusted brand, and ability to adapt to digital trends ensure it remains a core component of Brazil’s equity market and, by extension, the ETF itself. Investors looking for yield and stability in an emerging market context find Itaú to be a cornerstone holding.
What EWZ Really Owns
The top three holdings, Nubank, Vale, and Itaú Unibanco, account for more than 30% of EWZ’s weight, highlighting the concentrated nature of Brazil’s equity market. Together, they represent the country’s most dynamic growth engine (Nubank), its resource powerhouse (Vale), and its financial stability anchor (Itaú). This mix gives EWZ investors exposure to both cutting-edge innovation and traditional economic drivers.
Beyond the top three, EWZ’s top 25 holdings include Petrobras (over 11% combined between PETR3 and PETR4), Bradesco, B3 (Brazil’s stock exchange operator), Eletrobras, Ambev, and Embraer, names that capture Brazil’s energy dominance, financial depth, consumer demand, and industrial prowess.
Collectively, these holdings make EWZ not just a bet on Brazil’s stock market, but a reflection of its national economy: resource-rich, financially sophisticated, and consumer-driven.
Key Insights
- +33.2% YTD return, with 46.5% CAGR over 0.75 years.
- Heavily tilted toward financials, energy, and materials, over half the fund.
- Top three holdings: Nu Holdings (12.1%), Vale (9.2%), Itaú Unibanco (8.8%).
- Petrobras (PETR3 + PETR4) makes up over 11% combined weight, reflecting Brazil’s oil power.
- EWZ is cyclical, benefiting from commodity demand, interest rates, and currency trends.
Why You Should Invest In Brazilian Names
EWZ’s strong performance in 2025 underscores the appeal of Brazil as an emerging market investment destination. With a 33.2% YTD gain, the ETF has rewarded investors who were willing to ride out volatility in exchange for commodity exposure, financial sector growth, and consumer demand. Unlike more tech-heavy ETFs, EWZ’s drivers are rooted in real assets, oil, iron ore, agriculture, and the massive financial sector that underpins Brazil’s economy.
For investors, the opportunity in EWZ lies in its balance of growth and stability. Nubank provides high-growth fintech exposure, Vale gives cyclical but critical commodity leverage, and Itaú delivers dependable banking returns. Meanwhile, Petrobras ties the ETF to global energy markets, while companies like Embraer, Ambev, and Suzano highlight Brazil’s industrial and consumer diversity.
As always, EWZ comes with risks: currency volatility, political shifts, and commodity cycles can all impact returns. However, for those seeking exposure to emerging markets with a diversified and resource-rich foundation, EWZ offers a compelling entry point. The fund is not just about investing in Brazil; it’s about investing in one of the world’s most influential players in finance, energy, and natural resources.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
