# Brazilian Small-Caps ETF Plunges 35% After Election Shock

> Brazilian small-cap ETF drops 35% Monday as election surprise triggers panic, analysts say reaction is overblown.
- Title: Brazilian Small-Caps ETF Plunges 35% After Election Shock
- Summary: Brazilian small-cap ETF drops 35% Monday as election surprise triggers panic, analysts say reaction is overblown. The iShares MSCI Brazil Small-Cap ETF fell…
- Keywords: ewzs, brazil, election, small-caps, stock market, nasdaq, money, business, Brazilian, ETF, Plunges, Shock
- Source: Seekingalpha — https://seekingalpha.com/article/4957851-ewzs-brazilian-small-caps-crash-35-percent-monday-the-reaction-is-overdone
- Author: Ian Bezek
- Published: 2026-10-27T10:55:14+00:00
- Read time: 1 min
- Topics: ewzs, brazil, election, small-caps, stock market, nasdaq, money, business
## Brazilian Small-Caps ETF Plunges
The iShares MSCI Brazil Small-Cap ETF plunged 35% Monday morning after Brazil’s run-off election surprise.
## Analyst Says Reaction Overblown
Ian Bezek, Investing Group Leader, believes this is an overreaction and that Brazilian equities can perform under the current government's administration.
## ETF Trading Attractive Entry Point
The Brazilian small-cap ETF now trades around 6 to 7x earnings and below book value, with underlying companies capable of 10% annualized growth.
## Short-Term Headwinds Expected
Ian Bezek sees forced selling and currency headwinds persisting short-term but views EWZS as an attractive long-term entry point for patient investors.
## Key takeaway

The iShares MSCI Brazil Small-Cap ETF fell 35% Monday after Brazil's election surprise, but analysts say the drop is overreacted.