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EWZ vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EWZ vs. EEM

Last updated Jun 14, 2026

EWZ (iShares MSCI Brazil ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - EWZ is a Latin America Equities fund tracking the MSCI Brazil 25/50 Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, EWZ returned 8.29%/yr vs 9.91%/yr for EEM. A 0.72 correlation means they provide meaningful diversification when combined. EWZ charges 0.59%/yr vs 0.72%/yr for EEM.

Performance

EWZ vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Brazil ETF (EWZ) and iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, EWZ achieves a 10.48% return, which is significantly lower than EEM's 24.07% return. Over the past 10 years, EWZ has underperformed EEM with an annualized return of 8.29%, while EEM has yielded a comparatively higher 9.91% annualized return.

EWZ

1D
0.83%
1M
-3.12%
YTD
10.48%
6M
9.03%
1Y
31.51%
3Y*
9.47%
5Y*
4.96%
10Y*
8.29%

EEM

1D
0.56%
1M
4.32%
YTD
24.07%
6M
26.94%
1Y
47.57%
3Y*
21.60%
5Y*
6.56%
10Y*
9.91%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EWZ vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EWZ
iShares MSCI Brazil ETF		10.48%48.81%-30.41%32.62%12.09%-17.32%-20.35%27.67%-2.52%23.62%
EEM
iShares MSCI Emerging Markets ETF		24.07%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%

Correlation

The correlation between EWZ and EEM is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.63

Correlation (3Y)
Calculated over the trailing 3-year period

0.59

Correlation (5Y)
Calculated over the trailing 5-year period

0.54

Correlation (10Y)
Calculated over the trailing 10-year period

0.61

Correlation (All Time)
Calculated using the full available price history since Apr 14, 2003

0.72

The correlation between EWZ and EEM shifts across timeframes, from 0.54 (5 years) to 0.72 (all time), reflecting how their relationship changes across market environments.

EWZ vs. EEM - Sectors Allocation Comparison

Sectors
EWZ
EEM

Financial Services

33.4%
17.7%

Energy

16.7%
3.4%

Basic Materials

15.3%
5.9%

Utilities

12.8%
1.8%

Industrials

11.0%
6.6%

Consumer Defensive

4.6%
2.5%

Healthcare

2.3%
2.5%

Communication Services

2.1%
6.0%

Consumer Cyclical

1.4%
8.3%

Technology

0.4%
44.3%

Real Estate

-

1.0%

Financial Services

EWZ
33.4%
EEM
17.7%

Energy

EWZ
16.7%
EEM
3.4%

Basic Materials

EWZ
15.3%
EEM
5.9%

Utilities

EWZ
12.8%
EEM
1.8%

Industrials

EWZ
11.0%
EEM
6.6%

Consumer Defensive

EWZ
4.6%
EEM
2.5%

Healthcare

EWZ
2.3%
EEM
2.5%

Communication Services

EWZ
2.1%
EEM
6.0%

Consumer Cyclical

EWZ
1.4%
EEM
8.3%

Technology

EWZ
0.4%
EEM
44.3%

Real Estate

EWZ

-

EEM
1.0%

Compare stocks, funds, or ETFs

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iShares MSCI Brazil ETF

iShares MSCI Emerging Markets ETF

Often compared with EWZ:
EWZ vs. EWZSEWZ vs. SPYEWZ vs. FLBREWZ vs. ILFEWZ vs. EWWEWZ vs. IBZL.LEWZ vs. ARGT
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

EWZ vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
EWZ
EWZ Risk / Return Rank: 3838
Overall Rank
EWZ Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
EWZ Sortino Ratio Rank: 3838
Sortino Ratio Rank
EWZ Omega Ratio Rank: 3838
Omega Ratio Rank
EWZ Calmar Ratio Rank: 3737
Calmar Ratio Rank
EWZ Martin Ratio Rank: 3737
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 7575
Overall Rank
EEM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7070
Sortino Ratio Rank
EEM Omega Ratio Rank: 7878
Omega Ratio Rank
EEM Calmar Ratio Rank: 7575
Calmar Ratio Rank
EEM Martin Ratio Rank: 7575
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EWZ vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Brazil ETF (EWZ) and iShares MSCI Emerging Markets ETF (EEM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

EWZEEMDifference
Sharpe ratioReturn per unit of total volatility
1.25
2.10

-0.85

Sortino ratioReturn per unit of downside risk
1.76
2.73

-0.97

Omega ratioGain probability vs. loss probability

1.22

1.40

-0.17

Calmar ratioReturn relative to maximum drawdown

1.64

3.36

-1.72

Martin ratioReturn relative to average drawdown

5.17

12.38

-7.21

EWZ vs. EEM - Sharpe Ratio Comparison

The current EWZ Sharpe Ratio is 1.25, which is lower than the EEM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of EWZ and EEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

EWZ vs. EEM - Drawdown Comparison

The maximum EWZ drawdown since its inception was -77.25%, which is greater than EEM's maximum drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for EWZ and EEM.

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Drawdown Indicators

EWZEEMDifference

Max Drawdown

Largest peak-to-trough decline

-77.25%

-66.43%

-10.82%

Max Drawdown (1Y)

Largest decline over 1 year

-19.27%

-13.52%

-5.75%

Max Drawdown (3Y)

Largest decline over 3 years

-31.36%

-17.29%

-14.07%

Max Drawdown (5Y)

Largest decline over 5 years

-32.24%

-37.49%

+5.25%

Max Drawdown (10Y)

Largest decline over 10 years

-56.99%

-39.82%

-17.17%

Current Drawdown

Current decline from peak

-23.06%

-4.12%

-18.94%

Average Drawdown

Average peak-to-trough decline

-35.93%

-16.00%

-19.93%

Ulcer Index

Depth and duration of drawdowns from previous peaks

6.10%

3.67%

+2.43%

Volatility

EWZ vs. EEM - Volatility Comparison

The current volatility for iShares MSCI Brazil ETF (EWZ) is 7.35%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that EWZ experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

EWZEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.35%

10.80%

-3.45%

Volatility (6M)

Calculated over the trailing 6-month period

19.97%

19.39%

+0.58%

Volatility (1Y)

Calculated over the trailing 1-year period

25.20%

21.64%

+3.56%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

27.70%

19.26%

+8.44%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

34.04%

20.64%

+13.40%

EWZ vs. EEM - Expense Ratio Comparison

EWZ has a 0.59% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

EWZ vs. EEM - Dividend Comparison

EWZ's dividend yield for the trailing twelve months is around 4.70%, more than EEM's 1.79% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.79%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
EWZ
iShares MSCI Brazil ETF		4.70%5.19%8.91%5.66%12.59%9.87%1.71%2.54%2.89%1.71%1.81%4.08%

Frequently Asked Questions

EWZ and EEM have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (10.80%) compared to EWZ (7.35%). In terms of maximum drawdown, EWZ dropped -77.25% vs EEM's -66.43%.

On 10-year performance, EEM leads with 9.91% vs 8.29% for EWZ. On fees, EWZ is cheaper at 0.59% per year. On volatility, EWZ has been the lower-risk option at 7.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, EEM has performed better with a 9.91% return vs 8.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

EWZ is cheaper with a 0.59% expense ratio, compared with 0.72% for EEM.

EWZ has the higher dividend yield at 4.70%, compared with 1.79% for EEM.

EWZ is categorized as Latin America Equities, while EEM is Emerging Markets Diversified. EWZ tracks MSCI Brazil 25/50 Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.59% for EWZ and 0.72% for EEM.

EEM currently has the higher Sharpe Ratio (2.10 vs 1.25), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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