BDRs are a card up the sleeve of investors to dribble Ibovespa – Money Times

It’s no secret that since last year, Brazilian individual investors have gained access to BDRs (Brazilian Depositary Receipts), which in practice are certificates traded in the Brazilian stock exchange that represent actions issued by companies in other countries.

The leap of the cat at this time, which made many investors turn to BDRs, is the gain from the diversification in the investment portfolio, as the Ibovespa (IBOV), the main index of the Brazilian stock market, reached zero in 2021 accumulated.

THE Great Investments highlights, in a report obtained by the Money Times, that in the last 12 months, taking advantage of this alternative, the local investor has sought greater allocations and/or negotiations from companies linked to the e-commerce, Technology, Health and Payment options.

“The BDRs of Tesla (TSLA34), billionaire’s company Elon Musk, were more traded in this period, with an average daily volume close to BRL 49 million, which represents almost 19% of the average financial volume of BDRs trading here at B3 (B3SA3), owner of the Brazilian stock exchange”, points out analyst Filipe Villegas.

In 2021, until August 23, Tesla’s BDR had a 5.25% increase against the BDR index, which in the same period accumulated a 22.35% increase and the Ibovespa, which had a drop of -1.30 %.

In Genial’s assessment, both the recent collapse of the Ibovespa and the index of Small Caps is given by the most challenging environment in the Brazil, headed by political mismatch in Brasilia.

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BDRs are nothing more than certificates traded on the Brazilian stock exchange that represent shares issued by companies in other countries. They are a simplified way to invest abroad without the need to open an account with a foreign broker and the requirement to convert reais into dollars (Image: Reuters/Bryan R Smith)

Among the most traded BDRs, the broker emphasizes the strong presence of companies linked to the technology sector, which has been one of the main bets of investors in recent years.

apple (AAPL34), Alphabet (GOGL34), Microsoft (MSFT34) and Facebook (FBOK34) appear in the TOP 10 ranking.

“Among the BDRs most traded by investors on B3, the average return in 2021 is accumulated at +22.57%. In other words, if the investor had built a portfolio with the 10 most traded BDRs in the market, it would have a rise well above the Ibovespa”, explains Villegas

The tip for long-term investors, more than protecting their assets, is to look for something that also presents the possibility of generating value in the long term through ETFs or global asset BDRs.

Speaking of ETFs, they are more accessible than ever. Check out the new tool released by B3 to deepen investor knowledge in index funds.

Interview: where is the Ibovespa going?

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