A Brazilian-listed exchange-traded fund tracking the S&P 500 has delivered returns 40% higher than the underlying US index over the past ten years, driven largely by the depreciation of the real against the dollar.
The calculation, attributed to Leonardo Vasques of XP Asset Management, highlights the performance of SPXU11, a fund traded in reais on the São Paulo Stock Exchange.
The 40% premium reflects the cumulative impact of the real’s decline over the decade, adding a layer of return that is absent for investors holding the index in US dollars.
While the S&P 500 itself has generated substantial gains, the currency translation effect has provided a significant additional boost for investors holding the asset in local currency terms.
The divergence underscores the dual nature of international equity investing for emerging-market participants.
For Brazilian investors, exposure to US large-cap stocks has not only provided access to the world’s largest equity market but also served as a hedge against domestic currency weakness.
The 40% premium reflects the cumulative impact of the real’s decline over the decade, adding a layer of return that is absent for investors holding the index in US dollars.