EZA's 112% Decade Return Comes With Rand Risk Most Investors Overlook

EZA is an equity ETF that provides U.S. investors with direct access to South Africa's stock market, primarily through the Johannesburg Stock Exchange. Launched in 2003, it has a 59 basis point expense ratio and approximately $1.1 billion in net assets. The fund's performance is driven by corporate earnings growth, the rand-to-dollar exchange rate, and commodity cycles. EZA has shown strong returns recently, with a 56% gain over the past year, but has experienced significant volatility and drawdowns historically.

"EZA returned about 56% over the past year, a number that demands context. Much of that gain concentrated in 2025, when the fund delivered roughly 60% returns, driven by cheap valuations and solid earnings from its financial and materials holdings."

"The portfolio leans heavily on two sectors. Precious metals mining accounts for a large share of assets. The top three holdings, AngloGold Ashanti at about 11%, Naspers at about 11%, and Gold Fields at about 10%, together represent nearly a third of the fund."

"Over five years, EZA is up about 68%. Over ten years, it has returned about 112%. Those gains came with stretches of deep drawdowns, sovereign credit downgrades, and political upheaval."

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