International Applications: Profitability and Security for Brazilian Investors

In recent years, there has been a significant increase in Brazilian interest in investing in foreign markets. According to data from the Federal Revenue Service, Brazilians’ assets abroad reached R$ 1.1 trillion, with an impressive increase of about 200% over five years — in 2023, 816,100 Income Tax declarations reported these assets, compared to 263,500 five years earlier. This growth reflects a clear trend: more investors are seeking to diversify their portfolios beyond national borders.

The Numbers Show: Foreign Markets Offer Greater Stability

The main reason behind this migration is simple: performance. The S&P 500 index, representing the largest American companies, has historically provided higher returns than the Ibovespa, the main indicator of the Brazilian market. Besides the gains from the stocks themselves, there is an additional factor: the appreciation of the dollar and other strong currencies against the real further amplifies the results.

However, official figures underestimate the reality. Income Tax declarations do not capture investments in cryptocurrencies and other less regulated assets. The actual volume of Brazilians operating in international markets is certainly much higher.

Why Leave the Domestic Market?

Investing in more mature and stable economies offers three fundamental benefits:

Access to sectors unavailable in Brazil. Cutting-edge technology companies, innovative pharmaceutical firms, and startups with high growth potential are concentrated in developed markets. A Brazilian investor seeking exposure to these sectors practically needs to look outside.

Asset protection against local inflation. By linking investments to strong currencies like the dollar and euro, the investor significantly reduces the impact of the real’s devaluation on their assets.

Less volatile portfolios. Developed markets tend to be more predictable than the Brazilian market, with less extreme cycles and lower economic risks.

What Are the Available Options?

There are multiple ways for those wishing to invest abroad. Each presents distinct characteristics, risks, and potential returns:

Stocks of foreign-listed companies. Direct purchase of shares on exchanges like NYSE or Nasdaq, allowing the construction of a portfolio with global leaders.

(Index Funds). Enable investing in dozens or hundreds of companies simultaneously through a single asset, replicating market indices.

International investment funds. Professionals manage investments in external assets, facilitating access to complex markets without the need for direct registration on foreign exchanges.

Debt securities. Government or corporate bonds offer a predictable income stream through periodic interest payments.

Real estate in other countries. Properties can generate rental income and potential asset appreciation.

Foreign exchange market. Currency trading offers high liquidity but requires a deep understanding of macroeconomic factors.

Cryptocurrencies. Bitcoin and Ethereum represent digital assets with high earning potential, but extremely volatile. Recent data show Bitcoin (BTC) at $94.18K with a variation of +0.90%, Ethereum (ETH) at $3.30K with +4.29%, and Dogecoin (DOGE) at $0.15 with +3.97% in the last 24 hours.

How to Get Started in Practice?

The most straightforward path for beginners involves platforms that provide access to international markets. The process includes:

1. Choosing a reliable platform that offers access to international assets
2. Opening an account complying with compliance and regulatory requirements
3. Transferring funds to the account
4. Selecting assets according to personal strategy
5. Regularly monitoring and adjusting positions

This approach is significantly more practical than trying to register directly with foreign exchanges, which involve complex bureaucracy and strict institutional requirements.

Profitability: Reality vs. Expectations

The comparison between the S&P 500 and Ibovespa reveals important trends. The American index demonstrates consistently superior performance and more predictable growth, while the Brazilian index shows higher volatility with more pronounced peaks.

However, it is essential to consider actual costs: brokerage fees, exchange rates, and other expenses do not exist when investing locally. Even after deducting these costs, the American index maintains a clear performance advantage.

Is the Security Real? And Is It Really Worth It?

Developed markets are inherently more stable. Decades of sophisticated regulation and mature institutions reduce systemic risks compared to emerging economies. Still, global economic crises affect all markets.

The answer for most investors is yes: international diversification is a valid strategy. The combination of access to inaccessible sectors domestically, protection against local inflation, and greater relative stability creates favorable conditions for higher long-term returns.

The ideal approach is not to choose between investing in Brazil or abroad, but to use international investments as a stable, less volatile component within a well-balanced portfolio. The growing trend among Brazilians to allocate assets to foreign markets proves: for those seeking solidity and higher growth potential, how to invest abroad has ceased to be an exception and is becoming an increasingly common strategy.