Brazil ETFs: The Complete Guide for International Investors

Introduction: Why Brazil ETFs Should Be in Your Portfolio

Emerging markets are surging back into the limelight, and Brazil’s economy offers unmatched exposure to commodities, finance, and growth sectors. But investing directly in Brazil can be complex. As a U.S. or international investor, your smartest move might be leveraging Brazil-focused ETFs—liquid, cost-efficient, and accessible tools offering broad market entry.

In 2025, with Brazil outperforming many other emerging markets, this guide dives into the best Brazil ETFs, their real-world metrics, and how to pick the right one for your goals.

---

Key Takeaways

• Brazil ETFs like EWZ, EWZS, FLBR, and BRAZ offer diversified exposure with varying strategies and cost structures.

• EWZ is the largest and most liquid ETF tracking the MSCI Brazil Index.

• EWZS targets Brazilian small-cap companies, offering higher growth potential—and volatility.

• FLBR is a low-cost passive ETF, while BRAZ is actively managed with a focus on quality domestic teams.

• Know the risks: currency swings, political shifts, and tracking errors can affect returns significantly.

---

Why Brazil ETFs Matter to International Investors

Brazil’s market dynamics are compelling:

1. World-leading commodity exports like iron ore, oil, and agriculture.

2. A growing digital and fintech ecosystem.

3. Relatively high inflation and interest rates drive cash-generative sectors.

4. Brazil ETFs offer a low-barrier way to diversify portfolios without navigating Brazil’s direct investing complexities.

---

Top Brazil ETFs to Know in 2025

iShares MSCI Brazil ETF (EWZ)

• Type: Passive, tracks MSCI Brazil Index

• AUM: Largest Brazil ETF ($5.1B)

• Why it stands out: Deep liquidity, diversified exposure to large- and mid-cap stocks

• Ideal for: Core monthly holdings with easy access

iShares MSCI Brazil Small-Cap ETF (EWZS)

• Expense Ratio: ~0.60%

• Focus: Small-cap Brazilian equities, including names like Embraer and Eneva

• Ideal for: Higher growth seekers comfortable with more volatility

Franklin FTSE Brazil ETF (FLBR)

• Expense Ratio: ~0.19%, among lowest for country ETFs 

• Passive, broad-based exposure with a focus on cost-efficiency

• Ideal for: Fee-conscious and long-term investors

Global X Brazil Active ETF (BRAZ)

• Type: Actively managed, quality-driven holdings

• Ideal for: Investors seeking alpha and proactive exposure to domestic growth sectors

Other Notables:

• VanEck Brazil Small‑Cap ETF (BRF) – similar to EWZS in targeting small-caps. 

• Latin America ETFs with Brazil Exposure:

  • iShares Latin America 40 ETF (ILF) – includes Brazilian large-cap companies (~36% weight) 

---

How to Choose the Right Brazil ETF

Factor	What to Consider
Cost	Lower expense ratios (FLBR ~0.19%) preserve returns
Exposure	EWZ = large-caps, EWZS = small-caps, BRAZ = active
Liquidity	EWZ offers highest liquidity; others good for long-term holds
Investment Approach	Passive vs. Active may dictate your selection

---

Key Risks & Considerations

• Currency Risk: BRL volatility can erode or boost returns.

• Tracking Error: Some ETFs may underperform their benchmark.

• Political Cycles: Brazil’s regulatory and fiscal shifts can disrupt markets.

• Concentration Risk: Many Brazil ETFs weight heavily in financials and commodities.

---

Step-by-Step Checklist for ETF Investing

1. Define your Brazil exposure goal (large-cap core vs. small-cap upside vs. active alpha).

2. Open a U.S. brokerage account (e.g., Vanguard, Schwab).

3. Select ETF(s):

   • EWZ: broad, core exposure

   • EWZS: small-cap growth

   • FLBR: low-cost passive

   • BRAZ: active approach

4. Monitor ETF performance and pay attention to fees and underlying sectors.

5. Track macro indicators: BRL/USD trends, commodity prices, and political changes.

---

FAQ (Optimized for SEO)

Q: What is the most popular Brazil ETF?

• Answer: iShares MSCI Brazil ETF (EWZ) is the most liquid and widely used. 

Q: Is there a Brazil ETF for small-cap stocks?

• Answer: EWZS targets small-cap Brazilian companies including Embraer and Eneva. 

Q: Which Brazil ETF has the lowest fees?

• Answer: Franklin FTSE Brazil ETF (FLBR) offers a low expense ratio (~0.19%).

Q: Can you actively invest in Brazil through an ETF?

• Answer: Yes, Global X Brazil Active ETF (BRAZ) selects stocks based on quality management and growth.

Bottom Line

Brazil ETFs offer smart, scalable exposure to one of the world’s most vibrant emerging markets. Whether you're looking for broad large-cap access (EWZ), small-cap growth (EWZS), low-cost efficiency (FLBR), or active stock selection (BRAZ), there's an option to match your investment style.

Stay tuned to CNG Wealth for more in-depth coverage, ETF comparisons, and macro insights to help you navigate Brazil from an American perspective.