Brazilian equities are surging in 2026, with iShares MSCI Brazil ETF (EWZ) up 20% month-to-date, outperforming SPDR S&P 500 ETF Trust (SPY) by 17 percentage points. EWZ ranks as the third best U.S.-listed country ETF, signaling a potential technical breakout. During the last commodity supercycle, Brazilian equities outpaced S&P 500 by over 1,000%, highlighting their leverage to resource-driven markets.

Brazilian equities are experiencing a strong resurgence in early 2026 due to surging commodity prices, a weakening U.S. dollar, and a shift towards emerging markets. The iShares MSCI Brazil ETF (NYSE: EWZ) has risen by approximately 20% month-to-date, significantly outperforming the SPDR S&P 500 ETF Trust (NYSE: SPY) which has only gained around 3% in the same period. This 17-percentage-point difference represents the strongest one-month outperformance by EWZ against U.S. equities in over four years. The EWZ is currently the third best-performing U.S.-listed country ETF in the past month, following only the iShares MSCI Peru and Global Exposure ETF (NYSE: EPU) up by 26%, and the iShares MSCI South Korea ETF (NYSE: EWY). The EWZ/SPY spread has broken above its long-term downtrend, indicating a potential technical breakout that could attract more investment into Brazilian equities, historically known for their leverage in resource-driven bull markets. In the last major commodity supercycle from October 2002 to May 2008, Brazilian equities outpaced the S&P 500 by over 1,000%. This growth trend is expected to continue, as experts predict further gains for Brazilian equities. For further details, the full story is available on Benzinga.com.