iShares MSCI Brazil ETF

EWZ

Market cap $9.87B

U.S Trade Representative Jamieson Greer said that the investigation under Section 301 was launched at the direction of U.S. President Donald Trump.

Brazil expects to raise 50 billion reais ($9.92 billion) in what will be the most ambitious auction yet under its Eco ​Invest program, focused on developing advanced sustainable technologies in strategic ‌sectors, Rogerio Ceron, executive secretary of the Finance Ministry, told Reuters.

The iShares MSCI Brazil ETF (NYSEARCA:EWZ | EWZ Price Prediction) has rallied alongside Brazilian equities, lifting shares roughly 48% over the past year.

AI, Alternative Energy and Commodity stocks are all leading this market as a confluence of economic developments drive growth and constrain supply.

Latin American equities have quietly become one of the strongest regional trades of 2026, and three exchange-traded funds capture the move from very different angles.

I rate iShares MSCI Brazil ETF (EWZ) a Buy, citing asymmetric upside from monetary easing, election repricing, and commodity strength. Brazilian equities trade at a 9.6x forward P/E, supported by high real rates, a strengthening real, and an anticipated rate-cutting cycle. EWZ's concentrated exposure to Vale and Petrobras, combined with financials, benefits from commodity tailwinds and robust dividend yields.

Brazil's current P/E of 12.5x versus emerging markets' 16.2x suggests a potential 29% upside if re-rating occurs post-election. Risks include Lula's political resilience, judicial influence, and historical underperformance at similar P/E levels, necessitating careful timing and monitoring.

A tentative U.S/–Iran ceasefire has reignited risk appetite across emerging markets, driving more than $1.1 billion into U.S.-listed EM ETFs and snapping a four-week streak of heavy outflows, reported Bloomberg.

The ongoing Iran war and Strait of Hormuz blockade have sharply disrupted global energy and fertilizer flows, with Brazil facing acute exposure. Brazil benefits from higher oil prices as a net exporter, but inflation and logistics costs are rising, pressuring domestic fuel and transport sectors.

I rate the iShares MSCI Brazil ETF a BUY, citing Brazil's monetary easing and favorable global trade realignment. EWZ benefits from Brazil's deepening trade ties with China and the EU, structural export growth, and a dividend yield of 4.2%. Monetary policy easing is a near-term catalyst, while the EU-Mercosur free trade agreement offers a generational export opportunity.