Although not matched across regions, many Latin American equity markets have outperformed the S&P 500 year-to-date (YTD). Emerging markets in Peru, Colombia, Brazil, and elsewhere have beaten the S&P's 9% YTD return, due to a combination of factors, including higher commodity prices, growing AI-related demand for commodities like copper, lithium, and nickel, and positive company valuations.
Globally, investors are turning to emerging markets to capture strong income growth and take advantage of these lower valuations, and the Latin American market may be poised to continue to benefit from that pivot. While risks remain—economic growth remains generally modest, and political instability is a major factor in many countries, for example—US investors can easily build exposure to the space by using a few dedicated exchange-traded funds (ETFs).
EWZ Offers Liquid Exposure to Brazilian Financials and Instruments
iShares MSCI Brazil ETF Today
iShares MSCI Brazil ETF
From 09:04 AM in Mpumalanga
- 52 week interval
- $26.30
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$42.02
- Dividend Yield
- 4.31%
- Assets Under Administration
- $8.96 billion
This company is iShares MSCI Brazil ETF NYSEARCA: EWZ tracks the MSCI Brazil 25/50 Index, which gives investors access to a collection of approximately 57 large and mid-cap Brazilian stocks. These positions are primarily found across the financial, materials, utilities, and energy sectors, but also include representation from other parts of the market. A handful of large firms—including mining giant Vale SA—dominate the portfolio, with the top 10 holdings accounting for 58% of assets invested.
This concentration may not be a bad thing, given that the Brazilian market has benefited from agriculture, mining, and financial stock performance. Although the country is highly dependent on other commodity prices, and interest rate and inflation concerns persist in the second half of the year, EWZ has so far been a strong performer in 2026, returning more than 8% YTD and almost 29% in the past 12 months.
Like many other country-specific funds, investors can expect to pay a fee to gain targeted access to the Brazilian market through EWZ. The ETF charges an annual fee of 0.59%, which is on the high side compared to many passively managed funds. However, it remains liquid and very popular with investors based on $9 billion in assets under management (AUM) and about 32 million shares in one-month average trading volume.
EWW Gives Mexico Exposure With Nearshoring Tailwinds
iShares MSCI Mexico ETF Today
iShares MSCI Mexico ETF
As of 06/30/2026 04:10 PM Eastern
- 52 week interval
- $58.87
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$81.65
- Dividend Yield
- 3.27%
- Assets Under Administration
- $1.84 billion
The Mexican market got a boost from some of the factors listed above, as well as proximity to the ocean—a practice, in this case, of US companies moving their products across the border to cut costs. This has benefited the real estate, manufacturing, transportation, and other industries in Mexico.
Shares MSCI Mexico ETF NYSEARCA: EWW it is similar to its sibling, EWZ, in that it offers a country-specific focus and a smaller portfolio. This time, EWW holds 44 positions in the mall, although the big names continue to dominate—and, like EWZ, a few big hitters weigh more than the basket.
The advantage EWW has over its peers is that it is relatively inexpensive, with an annual fee of only 0.50%. At the same time, it has slightly outperformed EWZ in recent quarters, returning about 9% YTD and close to 30% over the past 12 months. The fund also sports a dividend yield of 3.25% for investors looking for increased income. On the other hand, AUM of close to $1.9 billion and a one-month trading volume of about 1.4 million shares is much lower than that of EWZ.
ILF offers Broad Latin America Exposure in One ETF
iShares Latin America 40 ETF Today
iShares Latin America 40 ETF
As of 06/30/2026 04:10 PM Eastern
- 52 week interval
- $24.67
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$38.50
- Dividend Yield
- 3.50%
- Assets Under Administration
- $3.74 billion
Investors looking for a single fund to build broad exposure to Latin America can find the iShares Latin America 40 ETF NYSEARCA: ILFwhich not only offers the widest geographical access to the funds on our list but also has a very low fee of only 0.47%. That said, due to ILF's mandate to focus on the 40 largest publicly traded LatAm companies, the ETF does provide exposure primarily to Brazil, Mexico, and Chile, with a small share of Peru and even smaller exposure to Colombian stocks.
So ILF is a very focused play, but it can be a good choice for investors looking for strong firms in the financial, materials, energy, and consumer staples spaces. The strategy has paid off this year: ILF has returned nearly 11% YTD and 37% over the past 12 months, on top of a dividend yield of 3.50%. For investors looking for more exposure to Latin America beyond this fund, it will be important to ensure that there is no overlap between ILF and other portfolios, given this ETF's focus on major players.
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