Why Invest Abroad?

Why Invest Abroad?

Investing abroad is becoming increasingly popular among investors. As global financial markets become more interconnected and country-specific economic conditions are uncertain in many regions, diversifying investments internationally offer several benefits.

Here are some key points to consider:

Investment Diversification

Diversification is key to reducing risk. By investing across different countries and sectors, investors can reduce their exposure to localized economic or political disruptions. International diversification can enhance portfolio resilience and contribute to more stable returns over time protecting your assets from domestic financial crises.

Protection Against Currency Volatility

Investing in strong currencies like the US dollar or the euro can offer protection against currency volatility. Economies in certain regions, particularly emerging markets, often experience instability and frequent exchange rate fluctuations. By allocating part of your portfolio to assets denominated in more stable currencies, you can help preserve your purchasing power and mitigate the impact of local currency depreciation.

Many investors in emerging markets are adopting the strategy of “dollarization” by converting part of their investments into US dollars and seeking exposure to dollar-linked assets, such as US company stocks, government bonds and other financial products. This approach aims to protect investors from the economic and currency related risk associated with  less stable markets.

Access to Leading International Companies and Global Managers

Investing internationally gives you the opportunity to allocate investments to leading global companies and top-tier asset managers. Exposure to global markets opens doors to innovative and high-performing financial products that may not be available in many domestic or emerging markets. These includes international mutual funds, shares of major technology and innovation companies, Exchange Traded Funds (ETFs) tracking various global indexes, and Real Estate Investment Trusts (REITs).  

By gaining international exposure, investors can tap into a much broader and more diverse range of assets traded on the world’s major stock exchanges. This global diversification offers opportunities beyond the limitations of any single market.  For instance, the Brazilian stock market represents less than 1% of the global market underscoring the limited scope of investing solely within one country’s market.

Expanding investment horizons internationally is a valuable strategy for globally-minded investors seeking diversification and access to broader opportunities. With the support of international brokers and investment platforms like Bradesco, you can build a diversified and resilient portfolio that can better withstand local market uncertainties while benefiting from global economic growth.

If you are considering expanding your investments beyond your home market, now is a good time to start. Evaluate your options, consult with our financial professionals, and take the first step toward a more diversified and future-ready portfolio.

By Portfolio Solutions Team (Douglas Guidelli)

This material is provided for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any financial product. The views expressed herein are those of the author and do not necessarily reflect the official position of Bradesco Investments, Inc.

Investing involves risks, including the potential loss of principal. Past performance is not indicative of future results. International investments may be subject to additional risks such as currency fluctuations, political instability, and differing accounting standards.

This content is not intended to substitute professional advice. Always conduct your own research and seek guidance from licensed professionals before making investment decisions.

Source: Bloomberg/Bradesco – 1 October 2025