XP now recommends that all investors invest 15% of their assets directly abroad

Head of investment bank allocation, Rodrigo Sgavioli points out that the recommendation can be beneficial for conservative investors and also for those who do not have goals of going abroad. Understand

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Marilia Almeida , Value Invests — Sao Paulo

03/31/2025

XP 's allocation team has, for the first time, established a minimum recommended percentage for investing directly abroad , via its international account. The investment bank's allocation team recommends investing 15% of financial assets abroad .

Of this total percentage, the investment bank recommends investing 55% in fixed income abroad (42% in government bonds and 13% in corporate bonds), 40% in variable income (60% in the American stock market), 5.5% in alternative investments and 2% in funds with immediate liquidity (the so-called money market).

The recommendation will be made for all investor profiles, even conservative ones , says Rodrigo Sgavioli, XP's allocation director . This is because, in his view, this is the investor who most tends to benefit from the dollar's protective characteristic.

"The currency has a negative correlation with the investment portfolio in Brazil, while fixed income products are correlated. I believe it is a dream for the conservative investor to see that his portfolio can shake in opposite directions: when part of it depreciates, the other gains, and vice versa."

Furthermore, Brazil's risk is structurally high, while investments in the country represent only 2% of the global total . " Those who invest only in Brazil are leaving 98% of their investments on the table, which is worrying considering that we are in a world undergoing transformation. And they are hoping that Brazil, a country with a cyclical economy, will always do well."

Sgavioli believes that clients should put aside questions about whether it is the best time to start investing, both in relation to the high price of the dollar and the more nebulous scenario for the American stock market from now on, given that the indexes have already advanced a lot in the last two years and may undergo a correction .

"There was a bubble in the 2000s. But ten years later, big technology companies like Google and Meta have become the most valuable in the world. The American stock market may be going through a bigger ups and downs, but structurally it should remain relevant ."

Regarding the dollar , since no one knows where it is headed, the best thing to do is to invest little by little, in order to get a more acceptable exchange rate , as is done when buying currency for travel, he explains. See where the dollar should go in 2025 .

Finally, the executive refutes the argument of many clients that, to invest abroad, it is necessary to have some assets abroad, take international trips or pay for exchange programs for children. "Our consumption here is dollarized. Investing abroad, therefore, is a way to protect yourself from inflation here. If the investor has goals of living abroad, the share of investments abroad should be greater . The 15% share is the minimum he should have just to protect himself from the risk in Brazil and rising prices ."

XP will continue to recommend that part of the investment portfolio in Brazil be allocated to products abroad. However, in this case, it will only recommend products in reais, that is, products that do not include exchange rate variations in their returns . The portfolio abroad will be separate from the investment portfolio in Brazil, a way, according to Sgavioli, to 'cut' the comparison with the benchmark for fixed income investments in Brazil, the CDI, which discourages investment.