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EWZ vs ILF
Which ETF would AI Choose? iShares MSCI Brazil ETF (EWZ) vs. iShares Latin America 40 ETF (ILF)
Key Takeaways
- iShares MSCI Brazil ETF (EWZ) delivers concentrated exposure to Brazilian equities through a passive strategy tracking the MSCI Brazil 25/50 Index, with approximately 45 holdings and an expense ratio of 0.59%.
- iShares Latin America 40 ETF (ILF) provides broader regional exposure across Latin America via the S&P Latin America 40 Index, featuring about 41 holdings and a lower expense ratio of 0.47%.
- Both ETFs exhibit heavy allocations to financials (around 35-38%), energy, and materials sectors, but EWZ maintains near-100% Brazil focus while ILF diversifies with meaningful Mexico exposure (approximately 25%).
- Top holdings overlap significantly, including NU, Vale, and Itaú Unibanco, underscoring shared emphasis on large-cap financial and commodity-linked names.
- ILF offers cost efficiency and geographic diversification within the region, whereas EWZ provides targeted single-country precision for investors seeking pure Brazil beta.
- Structural differences in index methodology and country allocation drive distinct risk profiles, with EWZ typically displaying higher volatility tied to Brazilian-specific economic cycles.
Introduction
Investors seeking equity exposure to emerging Latin American markets often evaluate iShares MSCI Brazil ETF (EWZ) and iShares Latin America 40 ETF (ILF) as complementary or alternative vehicles. These ETFs do not compete directly; instead, they represent distinct strategies within the same broad regional theme. EWZ targets Brazil exclusively, while ILF captures a diversified basket of leading Latin American companies. The comparison proves relevant amid ongoing sector rotation toward commodities and financials, interest-rate dynamics in emerging markets, and varying capital flows across Brazil and Mexico.
iShares MSCI Brazil ETF (EWZ) Overview
The iShares MSCI Brazil ETF (EWZ) is a passive, open-end fund that seeks to track the MSCI Brazil 25/50 Index (Net). The index applies 25/50 concentration caps to ensure diversification among Brazilian large- and mid-cap equities. The ETF holds approximately 45 securities and maintains an expense ratio of 0.59%. Sector allocations emphasize financials (approximately 35-38%), energy (16-18%), utilities, and materials. Top holdings typically include NU, Itaú Unibanco, Vale, and Petrobras. The fund launched in 2000 and employs market-cap weighting with periodic rebalancing to the underlying index. Its structure suits investors pursuing concentrated Brazil exposure without active management overlays.
iShares Latin America 40 ETF (ILF) Overview
The iShares Latin America 40 ETF (ILF) passively tracks the S&P Latin America 40 Index, focusing on 40 of the largest and most liquid equities across the region. The ETF maintains around 41 holdings and charges a lower expense ratio of 0.47%. Geographic exposure centers on Brazil (roughly 50-55%) and Mexico (approximately 25%), with smaller allocations to Chile, Peru, and Colombia. Sector weights mirror EWZ in financials (35-38%), materials, and energy but benefit from broader diversification. Prominent holdings overlap with EWZ and include NU, Vale, Itaú Unibanco, and Grupo Mexico. Launched in 2001, the fund uses market-cap weighting and rebalances according to index rules, offering efficient regional access through a single vehicle.
Industry and Thematic Backdrop
Both ETFs operate within Latin American equities, a sector influenced by commodity price cycles, particularly iron ore, oil, and copper, alongside domestic financial sector performance. Macroeconomic drivers include interest-rate trajectories in Brazil and Mexico, fiscal policy developments, and global demand for resources. Regulatory environments and currency fluctuations add layers of risk, while capital inflows respond to relative growth outlooks between the two largest economies in the region. These factors create an environment where single-country precision (as in EWZ) contrasts with multi-country resilience (as in ILF).
Performance and Positioning Comparison
In recent market cycles, EWZ has shown greater sensitivity to Brazil-specific catalysts such as commodity export trends and domestic monetary policy shifts. ILF has delivered relatively smoother returns through its Mexico diversification, tempering volatility during periods of Brazilian economic uncertainty. Both funds exhibit comparable sector-driven performance tied to financials and energy earnings, yet ILF’s broader mandate supports more consistent positioning across regional rotations. Investors seeking higher beta to Brazilian equities favor EWZ, while those prioritizing cost efficiency and geographic spread lean toward ILF.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening.
Tickeron AI Verdict
Based on structural factors including lower expense ratio, broader diversification across Latin America, and balanced risk exposure, Tickeron’s AI would currently favor iShares Latin America 40 ETF (ILF) with moderate probability. The fund’s cost efficiency and regional spread provide a more resilient profile amid evolving macroeconomic conditions, though EWZ remains compelling for targeted Brazil allocation depending on specific investor objectives.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is EWZ is a StrongBuy and ILF is a Hold.
EWZ in upward trend: price rose above 50-day moving average on September 29, 2026
EWZ moved above its 50-day moving average on September 29, 2026 date and that indicates a change from a downward trend to an upward trend. In 43 of 47 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +2.65% 3-day Advance, the price is estimated to grow further. Considering data from situations where EWZ advanced for three days, in 277 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
The Aroon Indicator entered an Uptrend today. In 212 of 239 cases where EWZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 89%.
Bearish Trend Analysis
The 10-day RSI Indicator for EWZ moved out of overbought territory on October 14, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In 39 of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 49 of 57 cases where EWZ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 86%.
The Momentum Indicator moved below the 0 level on October 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on EWZ as a result. In 70 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 86%.
The Moving Average Convergence Divergence Histogram (MACD) for EWZ turned negative on October 21, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 42 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 88%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EWZ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 87%.
EWZ broke above its upper Bollinger Band on October 05, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
ILF in downward trend: price may drop because broke its higher Bollinger Band on October 05, 2026
ILF broke above its upper Bollinger Band on October 05, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 45 similar instances where the stock broke above the upper band. In 40 of the 45 cases the stock fell afterwards. This puts the odds of success at 89%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for ILF moved out of overbought territory on October 13, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In 33 of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at 82%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 53 of 62 cases where ILF's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 85%.
The Momentum Indicator moved below the 0 level on October 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ILF as a result. In 65 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 79%.
The Moving Average Convergence Divergence Histogram (MACD) for ILF turned negative on October 22, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 39 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 87%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ILF declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
Bullish Trend Analysis
ILF moved above its 50-day moving average on October 02, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ILF crossed bullishly above the 50-day moving average on October 05, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 20 of 22 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.
Following a +1.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where ILF advanced for three days, in 294 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
The Aroon Indicator entered an Uptrend today. In 233 of 271 cases where ILF Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 86%.
| EWZ | ILF | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 90% | 3 days ago 82% |
| Stochastic ODDS (%) | 3 days ago 86% | 3 days ago 85% |
| Momentum ODDS (%) | 3 days ago 86% | 3 days ago 79% |
| MACD ODDS (%) | 3 days ago 88% | 3 days ago 87% |
| TrendWeek ODDS (%) | 3 days ago 90% | 3 days ago 86% |
| TrendMonth ODDS (%) | 3 days ago 87% | 3 days ago 85% |
| Advances ODDS (%) | 6 days ago 88% | 14 days ago 88% |
| Declines ODDS (%) | 4 days ago 87% | 4 days ago 84% |
| BollingerBands ODDS (%) | 3 days ago 90% | 3 days ago 89% |
| Aroon ODDS (%) | 7 days ago 89% | 7 days ago 86% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| TJUL | 30.74 | 0.01 | +0.04% |
| Innovator 2 Yr to July 2027 (TJUL) | |||
| SMCF | 38.77 | N/A | N/A |
| Themes US Small Cap Cash Flow Champions ETF (SMCF) | |||
| QQQH | 53.87 | -0.04 | -0.08% |
| NEOS Nasdaq 100 Hedged Equity Income ETF (QQQH) | |||
| QQEW | 154.76 | -0.26 | -0.17% |
| First Trust Nasdaq-100 Select Equal Weight ETF (QQEW) | |||
| MARO | 2.38 | -0.07 | -2.86% |
| Yieldmax Mara Option Income Strategy ETF | |||
EWZ and
Correlation & Price change
A.I.dvisor indicates that over the last year, EWZ has been closely correlated with NU. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if EWZ jumps, then NU could also see price increases.
| Ticker / NAME | Correlation To EWZ | 1D Price Change % | ||
|---|---|---|---|---|
| EWZ | 100% | +1.77% | ||
| NU - EWZ | 69% Closely correlated | +2.92% | ||
| JBS - EWZ | 18% Poorly correlated | +0.40% | ||
| XP - EWZ | 2% Poorly correlated | +3.61% | ||
| AUGO - EWZ | 1% Poorly correlated | -0.61% |
ILF and
Correlation & Price change
A.I.dvisor indicates that over the last year, ILF has been closely correlated with BBD. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if ILF jumps, then BBD could also see price increases.
| Ticker / NAME | Correlation To ILF | 1D Price Change % | ||
|---|---|---|---|---|
| ILF | 100% | +1.34% | ||
| BBD - ILF | 85% Closely correlated | +3.04% | ||
| VALE - ILF | 72% Closely correlated | +1.64% | ||
| BSAC - ILF | 72% Closely correlated | -0.75% | ||
| NU - ILF | 70% Closely correlated | +2.92% | ||
| VIV - ILF | 66% Loosely correlated | -0.92% | ||
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