EWZ tracks the MSCI Brazil 25/50 Index, which holds large and mid-cap Brazilian companies, with large weights in banks, oil and gas, mining and utilities. Returns are strongly affected by commodity prices, Brazilian interest rates, politics and the Brazilian real against the US dollar. The fund is volatile and concentrated in a small number of large companies. EWZ is a single-country fund, so it carries more risk than diversified emerging-market funds.
