Investing abroad: what are the options for investing abroad

Investing abroad is an interesting possibility for those looking for new, safer and more profitable options to apply in the market.

However, these investments require study and a good understanding of the dynamics of the international market .

In this text, we explain the advantages of investing abroad and describe the options for investing abroad.

Contents hide ]

  • 1What are the advantages of investing abroad?
  • 2What are the investment options?
    • 1Investment Funds
    • 2Exchange Traded Funds (ETFs)
    • 3Brazilian Depositary Receipts (BDRs)
    • 4Real Estate Investment Trust (Reit)
    • 5Stocks
  • 3What to consider before applying abroad?
  • 4Discover Magnetis’ investment portfolio

What are the advantages of investing abroad?

One of the main motivations for those starting in the investment area is to increase wealth , and one of the ways to achieve this goal is through investments abroad.

If, in Brazil, B3 trades shares of approximately 500 companies on US exchanges ( Nasdaq and NYSE , for example), this number is up to five times higher.

Another extremely important factor is the country’s economic and political stability , which significantly increases the protection of the portfolio, since the international market offers lower risks in periods of crisis .

In addition, other circumstances that favor investment abroad are:

  • Appreciation of foreign currencies ;
  • Definition of long-term financial planning;
  • Possibility of portfolio diversification .

What are the investment options?

It is common to hear that, in order to invest abroad, it is necessary to open an account with an international brokerage.

Yes: this is also true, and it makes possible acquisitions of assets on exchanges around the world.

However, there are other ways to make applications abroad – in reais, inclusive.

Want to know which ones? These two ways will be mentioned in the text.

Investment Funds

One of the simplest ways to invest abroad is through mutual funds.

Through them, it is possible to make real applications . In addition, the collection of taxation is carried out in the same way as in Brazil. However, there is a variation in the rate.

This type of application requires studies and analysis of international funds and requires attention to the fees that will be charged. Therefore, it is important to have specialized professional support to carry out this type of investment.

Exchange Traded Funds (ETFs)

There is also the possibility of investing abroad through the Exchange Traded Funds ( ETFs ) index funds .

Investments are based on stock exchange indices and are carried out through the acquisition of shares – managed by an accredited management company – in trading on B3.

Trading for the acquisition of shares of ETFs on the stock exchange works similarly to trading for the purchase of shares. The difference, however, is that each fraction acquired by the fund makes up a portfolio with several assets.

Some ETFs, with a greater number of investors and that allow investments abroad through B3, are:

  • IVVB11;
  • BOVA11;
  • HASH11;
  • XINA11;
  • GOLD11;
  • SMALL11;
  • DIVO11;
  • EURP11;
  • BOVV11.

Brazilian Depositary Receipts (BDRs)

The Brazilian Depositary Receipt (BDR) is an option for those looking to invest in foreign companies.

This title consists of a certificate that is equivalent to securities issued by companies abroad and traded through B3 . Some companies that have BDRs on the Brazilian stock exchange are:

  • Amazon;
  • Apple;
  • Microsoft;
  • Google.

Assets are sold in reais, but changes in share values ​​are affected by foreign currencies.

It is worth noting that negotiations for purchases of BDRs are somewhat restricted , as they can only be carried out by qualified investors .

Real Estate Investment Trust (Reit)

Real Estate Investment Trusts (Reits) have different characteristics from Real Estate Investment Funds (FIIs, traded on the Brazilian stock exchange) although they are often confused:

  • Type of investment: Reits are investment companies, while FIIs are funds;
  • Distribution of profits among shareholders: Reits (90%) and FIIs (95%);
  • Taxation: REITs are exempt from the IR. Reits must comply with all tax rules for US companies;
  • Market: the Reits market is valued at approximately US$1.2tr, while the REITs market does not exceed US$55bn.

Another important difference is in relation to debts: as they are companies, the REITs can assume debts (something that cannot be caused by the REITs).

stocks

Investment abroad can also be made through Stocks – shares of large companies (Amazon, Tesla, Google, Apple, Microsoft, etc.) traded on the American stock exchanges.

To make these investments, it is necessary to create an account at an international brokerage and make the investments in foreign currency.

What to consider before applying abroad?

Investing abroad is not so simple – although today it is easier than in previous times, it is still something that requires some consideration.

The first is related to the understanding of the financial market , since it is complex and has some particularities. Therefore, the study and planning on the best way to apply the money are fundamental.

It is also necessary to pay attention to the costs of international transactions and other bureaucratic issues – such as income and property tax returns abroad (the latter must be filed once a year with the Central Bank).

Another essential step is to know your investor profile , in order to understand the correct way to invest – and, consequently, to have more possibilities of profitability.

The two most important points before starting to invest abroad, however, are: creating a diversified portfolio and having an investment manager that offers profitability options.

Discover Magnetis’ investment portfolio

The best way to invest abroad and achieve financial goals is by creating a diversified investment portfolio that is resilient to market variations.

At Magnetis , we have developed a portfolio that is 100% focused on achieving the client’s goals , based on their investor profile and horizon.

For this, we conducted a personalized consulting as well as an assessment of market depth and free of conflicts of interest.

We believe that the most assertive way to achieve dreams and goals is to manage the investment risk properly and deliver a quality service from start to finish.

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

Leave a Comment