The Franklin Templeton FLBR Brazil Twin ETF has gained approximately 30% year-to-date in 2026 [3].
This performance edge highlights a growing competition among U.S.-listed exchange-traded funds targeting the Brazilian market. Investors are increasingly weighing the impact of expense ratios, and specific portfolio tilts, when selecting emerging market vehicles.
The FLBR fund has outperformed the iShares EWZ Brazil ETF by roughly five percentage points so far this year [4]. A primary driver of this difference is the cost of ownership. The FLBR ETF maintains an expense ratio of 0.19% [1], while the EWZ fund charges 0.59% [2]. This means the Franklin Templeton product charges roughly two-thirds less in fees than its iShares counterpart.
Beyond the cost structure, the two funds differ in their asset composition. The FLBR portfolio excludes Nu Holdings and instead maintains larger positions in Vale and Petrobras [5]. This strategic tilt toward different industrial leaders has contributed to the fund's ability to outpace the more established EWZ.
Investors accessing Brazil-focused funds on U.S. exchanges now have a lower-cost alternative that has shown stronger momentum in the current 2026 market cycle [3]. The divergence in performance underscores how a combination of lower overhead, and specific stock weighting, can alter the returns of a regional index fund.
“The FLBR Brazil Twin ETF has gained approximately 30% year-to-date in 2026.”
The performance gap between FLBR and EWZ illustrates the compounding effect of lower expense ratios and concentrated sector bets in emerging markets. By eschewing high-growth fintech like Nu Holdings in favor of traditional heavyweights like Vale and Petrobras, Franklin Templeton has successfully captured a different segment of Brazil's economic momentum, offering a more cost-efficient entry point for U.S. investors.
