Between internationalization, crypto, fixed income, and distribution, ETF 360° exposed an industry reaching maturity and an investor base that needs less noise and more direction.
Last Wednesday, the ETF 360º — Strategy, Income, and Global Access event took place in São Paulo, hosted by APIMEC Brasil. Featuring prominent figures from the ETF industry, the event brought insightful discussions regarding the current market landscape and future outlook. What emerged across the panels was a more sophisticated market—where the debate has moved beyond simply “which product to buy” toward more decisive questions: what purpose does this allocation serve, what role does it play in the portfolio, and which vehicle delivers it most efficiently?
Thinking outside the box and understanding the wrapper
Right out of the gate, Paula Reis from APIMEC summarized a quiet yet profound shift: investors can now “think outside the broad-sector box” and target themes actively reshaping the global economy. This reflects the expansion of global, thematic, and innovation ETFs, which are no longer mere market novelties but have become essential tools for analyzing the world.
Flavio Vegas, Product Specialist at Global X, reminded attendees that local ETFs feature fully structured Brazilian operations—complete with local asset managers, administration, and market makers—whereas an ETF BDR is merely a depositary receipt of a product listed abroad. The distinction isn’t cosmetic: it impacts costs, taxation, and execution experience. As emphasized during the panel, “the cost of an ETF isn’t just its management fee”—spreads, brokerage, taxes, and ancillary fees all enter the equation.
Along the same axis, Henry Oyama, Director of Investment Strategies at Hashdex, pointed out that Brazilian investors still carry a strong home bias, heavily anchored in the comfort of high local interest rates (CDI) and lower tolerance for volatility. Meanwhile, Pedro Mota, Portfolio Manager at Nu Asset, offered a perspective on international exposure and portfolio dollarization: when investors send money abroad, they realize “it’s not the US dollar fluctuating, but rather the Brazilian Real.” The phrase serves as both a metaphor and a diagnosis. Internationalizing a portfolio isn’t about abandoning Brazil; it’s about ceasing to treat the domestic market as the sole measure of all things.
From left to right: Paula Reis, Flavio Vegas, Henry Oyama, and Pedro Mota
Crypto exposure and dollarizing wealth: what investors need to understand
Henry Oyama noted that combining local ETFs and crypto ETF BDRs, the Brazilian market already boasts around 29 assets, whereas the United States has over 50 with dozens more filed. Still, the central message wasn’t about quantity, but function. Oyama stressed that crypto carries high volatility and that this can actually be beneficial, provided investors “know how to moderate their exposure” and systematically rebalance their portfolios.
Pedro Mota, from an asset allocation perspective, echoed this view: a portfolio should encompass different asset classes. In his view, an efficient framework is the core-satellite approach. “Using ETFs for the core strategy gives investors broad, simple, and low-cost exposure,” while the satellite portion enters “in a highly controlled manner to prevent the risk of ruin.” Under this framework, crypto stops being a wild bet and becomes a structural—yet measured—part of the allocation.
Mota added a relevant technical layer to the international debate by highlighting the choice between hedged and unhedged strategies: in a hedged strategy, investors incorporate the local-versus-US interest rate differential, historically positive for Brazil. Regarding currency exposure, Pedro Mota noted that investors who chose to dollarize their wealth over the last 6 years saw currency-linked returns hover close to zero.
The bottleneck is no longer products—it’s access, translation, and user experience
The comparison between Brazil and the United States served as a benchmark for market maturity. Alexandre Frade, Portfolio Manager at Itaú Asset, noted that US investors are far more accustomed to exchange-traded assets, which eased the historical migration from mutual funds to ETFs. In Brazil, progress looks different: new asset classes were gradually introduced, ETFs expanded beyond local equities, fixed income gained prominence, and open platforms began improving distribution.
Frade was direct: “It was useless to have an industry focused solely on Brazilian Equity.” Given that Brazilian investors are historically fixed-income oriented, it makes total sense that adoption grows as the vehicle embraces this segment. Still, the panel’s consensus pointed elsewhere: today, the bottleneck is no longer product variety. “We need to improve the solution for the client,” said Frade, referring to the operational friction of execution.
Alexandre Frade, Itaú Asset
Bruno Stein, Partner and Head of ETFs at Galápagos Capital, reinforced this thesis with a key takeaway: “An ETF is a vehicle; it’s an instrument.” In other words, it won’t single-handedly change an investor’s risk profile, but it can serve as the most efficient bridge between intent and execution—provided the industry learns how to explain it. Unsurprisingly, Stein insisted that the true game-changer will come through better information, education, and awareness.
Ricardo Schneider, ETF specialist, added a vector of scale: increased adoption from institutional investors could provide the momentum needed for the industry to accelerate once and for all. Put plainly: the shelf is fully stocked; the challenge now is illuminating the aisle.
Purpose comes before ticker symbols
While earlier panels mapped out the industry’s reach, the conversation around portfolio construction served as a reminder that no map replaces a destination. Rachel Sá, Investment Strategist at XP, summarized this with crystal clarity: allocation “will depend on what you want to achieve with it.” It sounds simple, but it is fundamental. To her, the correct question isn’t “which ETF should I invest in?”, but rather what goal am I pursuing?, as that is what dictates the allocation.
Clayton Rodrigues, Head of Indexed and International Strategies at Bradesco Asset, added that “the beauty of ETFs lies in gaining simple access to different mandates”—translating investor intent into an efficient structure. Rachel cited ACWI11 as an example of a global core, noting that it often makes more sense to view the portfolio’s core as global allocation rather than a simple extension of the US market.
Clayton Rodrigues, Bradesco Asset
In practice, constructing this portfolio requires macro reading, diversification, and disciplined rebalancing. Clayton highlighted the attractive entry points in local fixed income alongside secular themes like technology and China; Christopher Galvão agreed that with real interest rates at current levels, inflation-linked assets have drawn substantial interest. Asset selection, Clayton noted, must follow a top-down analysis: macro scenario, market timing, and only then choosing the specific instruments.
Conclusion: The ETF is a vehicle
Brazilian investors are realizing that ETFs are not merely standalone products, but a superior wrapper for accessing asset classes, sectors, and global geographies. The ETF has matured as a tool; now, the market must mature its approach to educating investors.
