The Brazilian investor will have access to three new investment options with exposure to the international market this Wednesday (21), through BDRs (Brazilian Depositary Receipts) from global index funds (ETFs). In practice, they are receipts that represent shares in ETFs listed on exchanges abroad.
The assets that debut on B3 are managed by Global X, a manager in New York, and are available to individual investors.
According to Bruno Stein, director of Global X ETFs Brasil, these BDRs will provide investors with access to Reits (Real Estate Investment Trusts), equivalent to real estate funds (FIIs) in the American market, with higher dividend yields, in addition to offering exposure to the sector. of cannabis, considered an emerging industry.
Check out the three new ETF BDRs available on B3:
ETF originalTicker do BDR the ETF after B3Global X Cannabis ETFBPOT39Global X SuperDividend® REIT ETFBSRE39Global X MSCI China Financials ETFBHIX39
Source: Global X
According to Stein, the manager’s goal is to have 40 BDRs de ETFs in Brazil by the end of the year – so far, the manager has already launched 22. The next launches should take place in the following months, with the largest number in October. “Our objective is to bring the 40 ETFs that we believe are essential for the Brazilian investor”, says the executive.
Inside the theses
The Global X Cannabis ETF (BPOT39) replicates the Solactive Cannabis index, which seeks to invest in companies across the cannabis industry.
According to Stein, the global cannabis market is currently valued at $28 billion. It is expected to reach US$200 billion by 2028, with an average annual growth rate until then.
He explains that recreational cannabis has already been legalized in 19 US states. A Global X survey of 557 participants in the United States indicates that Americans intend to expand recreational use. “A set of strengths – regulatory review, improving public opinion and a large addressable market – make cannabis an attractive topic in its early stages,” he says.
The Global X SuperDividend Reit ETF (BSRE39), which tracks the Solactive Global SuperDividend Reit index, gives access to 30 Reits with the highest dividend yields in the world.
Stein mentions that in periods of inflation and volatility, Reits show themselves as options for hedging (protection) against inflation, in addition to offering attractive dividends.
Most Reits distribute quarterly earnings in the US. Those in the Global X SuperDividend Reit ETF, however, make monthly deposits, says Stein. In any case, it is worth remembering the Reits ETFs in Brazil do not pay dividends. Proceeds are reinvested in the equity of the ETF itself. Investors, therefore, do not receive monthly income – as they do with FIIs – but can benefit from the appreciation of quotas.
• ETFs that pay dividends may reach the Brazilian stock exchange by the end of 2022
• Check out the differences between REITs ETFs, American real estate funds, available on B3
Stein further points out that approximately 9% of property deals are handled by listed Reits, significantly up from the 1% seen in the mid-1990s.
The Global X MSCI China Financials ETF (BHIX39) offers exposure to the Chinese financial market. This ETF BDR replicates the MSCI China Financials 10/50 Index, comprised of large and mid-cap companies from the MSCI China Index ranked in the financial sector.
In Stein’s view, China’s capital and financial markets are gaining influence on the global stage, with the development of fintechs, access to foreign investors and expansion of services to a growing middle class. The industry has around $4 trillion in market capitalization. “This could spur a new era of growth for China’s financial sector,” she points out.
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