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Brazilian equities are on the rise in 2026, with iShares MSCI Brazil ETF up 20% vs. S&P 500's 3% gain. EWZ ranks third best U.S.-listed country ETF, outperforming U.S. equities by 17% in the past month. The EWZ/SPY spread shows a potential breakout, with experts predicting further upside in Brazilian equities due to historical leverage in resource-driven bull markets.
In early 2026, Brazilian equities are on the rise, driven by high commodity prices, a weaker U.S. dollar, and a shift towards emerging markets. The iShares MSCI Brazil ETF (EWZ) has surged by 20% this month, significantly outperforming the SPDR S&P 500 ETF Trust (SPY) which gained less than 3% during the same period. This 17% difference represents EWZ's strongest one-month outperformance against U.S. equities in over four years. Data from CountryETFTracker ranks EWZ as the third top-performing U.S.-listed country ETF, falling behind only iShares MSCI Peru and Global Exposure ETF (EPU) at 26%, and i Shares MSCI South Korea ETF (EWY). The EWZ/SPY spread has broken its long-term downtrend, suggesting a potential technical breakout and potentially attracting more investment into Brazilian equities. Historically, during the last major commodity supercycle from October 2002 to May 2008, Brazilian equities outperformed the S&P 500 by over 1,000%, highlighting their historical connection to commodity-driven bull markets. Market experts foresee further growth in Brazilian equities.