Brazil’s ETF industry is on a growth path according to Renato Nobile, founder of Buena Vista Capital.
The country has seen new regulation, designed to support the fledgling ETF industry. There are 150 ETFs in the market, with just 15 providers and assets of USD13-14 billion against a USD3 trillion mutual fund industry.
“There is tons of room for growth,” Nobile says, “people are talking more and more and we are seeing a lot of traction.”
Nobile started in financial services in 2000, post the Dot Com bubble and had a number of businesses in technology and the financial markets, including an RIA in Florida, and another in Brazil which was sold to Guide Investments (today owned by Safra Bank) in 2016.
“Since then I started my own asset management firm to develop a venture capital offering and to launch two mutual funds and a local hedge fund in Brazil,” he says.
Nobile had always appreciated the power of ETFs and decided to focus on them in 2019, with the firm launching its first ETF in 2023 in partnership with US-based NEOS Investments. That first product was SPYI11 and the firm now has 10 ETFs, including products based on the income and crypto space, with assets of USD200 million.
“When we launched it was good timing because people were beginning to talk a little more about ETFs in Brazil as they were starting the transition from commission to fee-based investing,” Nobile says.
“We are proud to be among the leading ETF providers in Brazil, while remaining an independent asset management firm,” Nobile says. “We are investing a lot as we think there is a ton of opportunities to launch more ETFs with income and different strategies.
“Given our history in Brazil, we have strong relationships across the market. We’re already in conversations with trusted partners who see value in the product and have begun supporting its distribution, which resembles the dynamics we see in the US.”
His firm is talking to RIAs, family offices and institutions.
“People love income here in Brazil and covered call products are big for us. Brazilians also love crypto so our fastest growing product is a bitcoin covered call ETF. There are lots of opportunities using different strategies such as factors and going away from plain vanilla.”
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