The growing popularity of ETFs in Brazil reflects a scenario of growth and diversification in the financial market.

In this article, we will explore the evolution of ETFs, which have seen a significant increase in assets under management and investor base.

In addition to tracking traditional indices, these funds are diversifying their strategies, such as income generation and exposure to specific sectors.

We will also analyze how this diversification demands a deep understanding of the reference assets and investment objectives, which are fundamental for investors to make more informed and strategic decisions.

Expansion of the ETF Market in Brazil

The ETF market in Brazil has gained strength consistently and, as a result, has come to occupy an increasingly relevant space in investment decisions.

Between 2024 and 2025, assets under management increased from R$ 54 billion to R$ 91 billion , while the investor base grew from 700 to 919.

This movement shows that Brazilian investors are seeking greater efficiency, diversification, and access to strategies previously restricted to more sophisticated profiles.

• Assets under management: from R$ 54 billion to R$ 91 billion
• ETF investors: from 700 to 919
• Market reading: greater interest in diversification and simplified access

This growth is important because it expands the options available to the average investor, who can build more balanced portfolios with competitive costs and simple trading on the stock exchange.

Furthermore, it strengthens the financial market by increasing liquidity, stimulating new product launches, and accelerating education about indexed products.

In practice, ETFs cease to be just a niche tool and become a strategic gateway for those who want to invest with more discipline, flexibility, and a long-term vision.

Diversification and Growth in the Number of Listed ETFs

The 70% jump in the total number of ETFs between Jan/25 and Mar/26 shows that Brazilian investors are no longer just looking for index replicas, but rather more precise solutions for each portfolio objective.

During this period, the market gained scale and diversity, keeping pace with the expansion of assets under management, which increased from R$ 54 billion to R$ 91 billion in 2025, while the number of investors grew from 700 to 919.

This move indicates greater familiarity with the asset class and openness to products with different risk and return profiles.

Source: B3 and Bora Investir

In addition to traditional ETFs, funds focused on income generation, international exposure, and thematic strategies have emerged , broadening the range of options for those seeking to combine protection, diversification, and potential for appreciation.

Covered call strategies have also grown, as they can generate recurring income, although they limit some of the gains during strong price increases.

1. Income ETFs with options 2. International ETFs 3. Sector and thematic ETFs 4. Factor-linked and actively managed ETFs

Income Generation Strategies: Focus on Covered Call ETFs

Covered call income ETFs combine a portfolio based on a benchmark index with the sale of call options on part or all of that exposure, which transforms a portion of the potential appreciation into an option premium received periodically.

In practice, the fund holds the index's assets and, by selling the call options, generates additional cash flow, which tends to favor periodic income and greater predictability of distribution for the investor.

This mechanism has been gaining ground in the Brazilian market, including in products linked to indices such as the Nasdaq-100, accompanied by options traded in an organized market with clear replication rules, as seen in covered call ETF initiatives on the Nasdaq 100.

However, this income is not free, because the fund forgoes part of the gain if the market rises sharply, creating a ceiling on gains during strong increases.

Furthermore, in significant downturns, the option premium may not compensate for the devaluation of assets, so investors should assess whether they are seeking income and lower volatility or prefer to capture the full upside potential of the index.

International and Sector-Specific Exposure: New ETF Segments

Global and sector-specific ETFs broaden portfolio diversification because they reduce dependence on the local economy and allow access to investment theses that are not always available on the B3 (Brazilian stock exchange). Thus, investors can combine geographical protection with exposure to long-term themes such as innovation, digital consumption, and energy transition.

Among the alternatives, international markets are gaining ground with funds that replicate broad indices from the United States and other stock exchanges, while specific sectors offer direct access to technology, energy, healthcare, and agribusiness.

This is useful because each segment reacts differently to the economic cycle, which helps to smooth out fluctuations and balance risk and return.

Source: B3 and ETFs Brazil

See practical examples:

Market/Sector	Example of an ETF
American market	IVVB11
Global technology	TECK11
Energy	ENRG11
Agribusiness	IAGR11

By distributing investments across these areas, the investor expands opportunities and makes the portfolio more resilient.

How to Assess Goals and Risks Before Investing in ETFs

Before buying an ETF, the investor needs to align the fund with their objective.

If the goal is long-term growth, it makes sense to seek a broad and diversified index.

If the priority is income, the product needs to clearly show how it generates payments and what limitations this imposes.

Furthermore, the benchmark matters because it defines what the ETF attempts to replicate and what type of exposure it delivers.

Therefore, it is worth carefully analyzing the prospectus and checking the portfolio composition, the index methodology, and the distribution policy.

It's also essential to compare costs, since higher rates reduce net returns over time.

Another critical point is liquidity, because a poorly traded ETF can widen spreads and make it difficult to enter and exit positions at the desired time.

Liquidity risk deserves special attention in smaller or thematic funds.

Furthermore, international ETFs are affected by exchange rate fluctuations, which alters the final result in reais (Brazilian currency).

Therefore, investors should compare price, strategy, and volatility before making a decision.

In conclusion , ETFs in Brazil are experiencing a period of significant expansion, with new opportunities and strategies attracting more and more investors.

Understanding the risks and objectives of each fund is essential to making the most of this growth.