Assets under management in Brazil’s exchange-traded fund (ETF) market have climbed to BRL 120 billion, more than doubling from the BRL 54 billion recorded at the end of 2024.
The rapid expansion underscores a sustained migration of retail capital away from traditional, higher-fee mutual funds toward transparent, passively managed instruments.
The growth has been particularly pronounced among individual investors, who are driving the bulk of the inflows.
This demographic shift reflects broader trends in Latin America’s largest economy, where cost-conscious retail participants are increasingly favoring index-tracking vehicles over actively managed portfolios.
The move mirrors global patterns seen in mature markets, where ETFs have steadily captured market share from active managers.
Brazilian investors are also diversifying their ETF holdings beyond domestic equities.