EWZS vs FLBR

EWZSBiShares MSCI Brazil Small-Cap ETF

FLBRAFranklin FTSE Brazil ETF

In short

EWZS Brazil past the blue chips. EWZS tracks the MSCI Brazil Small Cap Index, a compact basket of roughly 70 smaller Brazilian companies that the country's large-cap benchmarks are built to exclude.

FLBR Brazil at roughly a third the fee of the typical fund in the category. Franklin tracks a capped FTSE index of about 100 Brazilian stocks, and has hugged that benchmark closely since launching in 2017.

Stated mandate

EWZS The fund seeks to track an index of small-cap Brazilian equities.

FLBR The fund uses a passive indexing approach intended to track the performance of the FTSE Brazil Capped Index before fees and expenses.

Why people hold it

• EWZS One job, done tightly: it follows the MSCI Brazil Small Cap Index and has hugged it closely, with no active drift or style creep.
• The 0.59% expense ratio sits at the middle of the Brazil ETF pack, and it's the same fee iShares charges on its large-cap Brazil fund (EWZ) for an easier slice.
• Running since 2010, one of the longest-lived ways to own Brazilian small caps in a US wrapper, and it distributes quarterly.
• Lands in the upper half of the small group of Brazil ETFs we cover, ahead of the other dedicated small-cap option (BRF).

• FLBR 0.19% a year against a 0.60% median for Brazil funds. In a market this jumpy, the fee is the one input you actually control.
• Same large-cap Brazil market as EWZ at 0.59%, for well under half the cost, and one of the strongest all-round builds in the Brazil group.
• Plain index plumbing: it aims to match the FTSE Brazil Capped Index before fees, and its tracking has stayed very close to that benchmark.
• Backed by Franklin Templeton and trading since 2017, so this is a seasoned wrapper rather than a fresh single-country launch.

Worth knowing

• EWZS Single-country small caps are a rough ride: Brazilian equity swings and real-versus-dollar currency moves both land in the same share price.
• Smaller and less heavily traded than the flagship Brazil funds, so spreads can run wider, especially outside Brazilian market hours.
• Cheaper Brazil exposure exists (FLBR at 0.19%), but it's the large-cap market, not this small-cap slice.

• FLBR One country, about 100 mostly large companies, in a currency tied to commodities and politics. Concentration is the whole point, and it cuts both ways.
• It changes hands less often than the category's giant, EWZ, so spreads can run wider. Limit orders earn their keep.
• Cash comes quarterly, and the amount rides on what Brazilian companies choose to pay out, which varies year to year.

Full EWZS profile⁠

Full FLBR profile⁠