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iShares MSCI South Africa ETF (NYSEARCA:EZA - Get Free Report)'s share price reached a new 52-week high on Friday. The company traded as high as $81.47 and last traded at $81.63, with a volume of 88488 shares traded. The stock had previously closed at $80.76. iShares MSCI South Africa ETF Stock Up 1.0% The
EWY, GREK, EZA, EWP and EPOL surged in 2025 as international ETFs beat U.S. peers, due to cheaper valuations, policy stimulus and diversified market exposure.
Shares of iShares MSCI South Africa ETF (NYSEARCA:EZA - Get Free Report) hit a new 52-week high on Friday. The company traded as high as $70.46 and last traded at $69.87, with a volume of 8991 shares. The stock had previously closed at $69.92. iShares MSCI South Africa ETF Trading Up 0.6% The company's
Alphabet topped the Magnificent Seven in 2025 with a 66% gain, but eight global country ETFs delivered even bigger gains.
It's been a turbulent past couple of weeks, but the S&P 500 is poised to finish the year with some historically decent gains intact.
The iShares MSCI South Africa ETF has delivered stellar returns of 60% in 2025, which is double the returns of EMs, and triple the returns of global stocks. EZA offers high dividend yields and exposure to income-oriented sectors such as materials and financials but suffers from high volatility and significant tracking error of its index. EZA's top holding-Naspers which has a hefty weight of 14%, doesn't necessarily have strong enough ties with South Africa.
Now in the home stretch of Q3, international stocks have had a banner year in 2025. Whereas the United States' S&P 500 is currently up 12.7% year to date, the MSCI All World Ex. US ETFs have gained well over 24% in that same span. Italy (EWI) is up over 45% on a year to date basis. That puts it on pace for the ETF's largest annual gain on record (it began trading in March 1996) if it holds.
It's the year of foreign equities ETF diversification and performance. For many ETF issuers, their international or ex-U.S. ETF strategies have led their suites for performance amid rising domestic risks.
EZA has outperformed gold, global banks, and the S&P 500 since October 2023, driven by strong momentum and a bullish macro backdrop. The ETF offers a compelling valuation, with a P/E just above 10 and a PEG ratio under 1.0x, plus a high 5.81% dividend yield. EZA's portfolio is concentrated in Financials and Materials, making it sensitive to trends in global banking and gold prices.
A continued rise in sovereign and country risks pose threats, especially given the emerging faultlines in the GNU and South Africa's tariff vulnerabilities. Foreign operators listed on the JSE might experience contrasting outcomes, yet, global macro-level concerns remain. Factors such as supportive Gold prices and robust performance from Naspers have carried EZA in recent times.
South Africa offers investment opportunities, but growth remains low; EZA ETF provides access with a 7.37% dividend yield and a low expense ratio of 0.59%. EZA is concentrated in Financials, Basic Materials, and Communication sectors, with high volatility and limited diversification; top 10 holdings make up over 60% of the portfolio. South Africa's economic conditions include low GDP growth, high unemployment, and moderate inflation; interest rates are unlikely to drop significantly due to rising inflation.
Topping the list and outperforming in that span have been emerging market countries like Brazil and India, which are both up well over 6.5%. International ETFs don't only have momentum on their side, but they also offer higher yields than the US at the current moment. Across all 22 ETFs, the average yield stands at 3.25%.
iShares MSCI South Africa ETF has high exposure to economically sensitive sectors, leading to potential volatility, especially during economic downturns. EZA's lack of technology sector exposure weakens its long-term growth prospects, contributing to poor performance over the past decade. Despite South Africa's gradually improving economy, EZA's low valuation reflects weak growth prospects and high volatility, making it less attractive.
Shanghai CSI 300 has gone from a 52-week low to a 52-week high in only a couple of weeks. Other than China and Hong Kong, Australia is the only other international market starting the week at a 52-week high.
Market strengths here… and abroad.
US equities have outperformed the rest of the world for a long time now. While the US is up 58% on a total return basis during the current bull market, the rest of the world is up 13.5 percentage points less at +44.5%. Looking at the international dividend ETF over a longer time frame, over the last five years, it's up 20.6% in price and more than double that on a total return basis.
The iShares MSCI South Africa ETF has surged over 15% in six months due to a favorable election result and a potential regional interest rate pivot. Despite improved investor sentiment, I'm cautiously optimistic about South Africa's new government. Moreover, cyclical economic challenges have emerged. EZA ETF's portfolio appears concentrated, raising concerns about its cyclical performance and exposure to geopolitical risks.
As U.S. interest rates remain elevated and the dollar continues its strong run for much of 2024, emerging market equities have still delivered impressive performances. While trailing behind the S&P 500, the iShares MSCI Emerging Markets ETF NYSE: EEM has climbed 5.7% year-to-date.
ETFs have exploded in popularity over the last decade, accelerating rapidly since the so-called ETF rule arrived in 2019. All kinds of thematic ETFs have emerged for investors to consider.
South Africa is perceived as corrupt and dangerous, but the country also has excellent demographics, strong geography, and a considerable existing capital base. SA's equity market is heavily discounted vs. other global markets as a result of poor economic performance, but as the political winds shift, this may change. We see the recent election result as a strong indication that the country is on the way to righting itself.