EWZ vs HYZD Fund Comparison

A comparison between EWZ and HYZD based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on EWZ vs HYZD

Here's an in depth look at the differences between iShares MSCI Brazil Capped ETF ($EWZ) and WisdomTree Interest Rate Hedged High Yield Bond Fund ($HYZD).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

68% FI Score
  • ewz
  • ETF
  • International Stocks
  • Latin America Stock

iShares MSCI Brazil Capped ETF

Expenses: 0.59% (Better than 1% of similar funds)

This is an OK choice for a Latin America Stock International Stocks fund. See why »

47% FI Score
  • hyzd
  • ETF
  • Bond
  • High Yield Bond

WisdomTree Interest Rate Hedged High Yield Bond Fund

Expenses: 0.43% (Better than 1% of similar funds)

This is a bad choice for a High Yield Bond Bond fund. See why »

Both $EWZ and $HYZD are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

EWZ HYZD
Market Score 9.4 /10 3.1 /10
Category Score 5.0 /10 0.0 /10
Total 14.4 3.1

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $EWZ

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, EWZ has an expense ratio of 0.59% while HYZD has an expense ratio of 0.43%.

Winner: $HYZD

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, EWZ is a large fund with 4.81 Billion in assets under management. HYZD, on the other hand, is a small fund with 128 Million in assets under management.

Winner: $EWZ, iShares MSCI Brazil Capped ETF

Which Should You Choose? EWZ or HYZD?

Comparing these two funds isn't an apples to apples comparison. EWZ is a International Stocks Latin America Stock fund, while HYZD is a Bond High Yield Bond fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives EWZ a score of 68 and HYZD a score of 47.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$EWZ

iShares MSCI Brazil Capped ETF

68

Read More
Ratings
Rating Type Rating
Diversification Score 7 /10
Expense Ratio Score 6 /10
Expense Rating 4 /10
Market Score 9 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Jul-10-2000
Exchange NYSE ARCA
Expense Ratio 0.590%
Net Assets 4.81 Billion
Yield 4.49%
Holdings
Description Info
Market International Stocks
Category Latin America Stock
Sectors
  • Basic Materials 16.06%
  • Communication Services 2.53%
  • Consumer Cyclicals 10.14%
  • Consumer Defensive 9.69%
  • Energy 11.91%
  • Financial Services 29.40%
  • Healthcare 4.55%
  • Industrials 7.50%
  • Real Estate 1.23%
  • Technology 0.44%
  • Utilities 6.53%
Regions
  • Latin America 100.00%

$HYZD

WisdomTree Interest Rate Hedged High Yield Bond Fund

47

Read More
Ratings
Rating Type Rating
Expense Ratio Score 9 /10
Expense Rating 6 /10
Market Score 3 /10
Category Score 0 /10
Overview
Overview Details
Fund Type ETF
Inception Date Oct-7-2015
Exchange NASDAQ
Expense Ratio 0.430%
Net Assets 128 Million
Yield 5.97%
Holdings
Description Info
Market Bond
Category High Yield Bond
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%

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