5 Best Performing Small-cap ETFs in 2023

2. iShares MSCI Brazil Small-Cap ETF (EWZS)

Year-to-Date Returns: 21.3%

The top two spots on the list are claimed by Brazilian-based small-cap ETFs, beginning with the iShares MSCI Brazil Small-Cap ETF (EWZS). The fund provides investors with exposure to Brazilian small-cap stocks, 72 in all, and more accurately represents the Brazilian economy as a whole than the EWZ ETF. It has an expense ratio of 0.58%.

The fund’s top holding is the Brazilian-traded shares (EMBR3) of Embraer S.A. (NYSE:ERJ), which have climbed by 36% this year. The Brazilian aerospace company is one of the largest producers of commercial aircraft in the world, trailing only industry titans The Boeing Company (NYSE:BA) and Airbus.

Embraer S.A. (NYSE:ERJ) delivered 47 jets in the second quarter, which represented a 47% year-over-year jump. Unsurprisingly, revenue growth was equally strong, rising by 57% year-over-year when it came to commercial aircraft and by 42% in executive. The company also maintained a stable backlog of $17.3 billion.