Investing in the US has become a very interesting alternative in recent years. It has attracted the attention of foreigners from all over the world, including Brazilians. The country offers a solid and stable financial market, with strong currency and profitable investments for investors of all profiles and pockets.
To prove it, in this article we have selected the 9 ways for you to invest your money in the United States. Below, read more!
How does the American Market work?
The American financial market has the two largest stock exchanges in the world: NYSE and NASDAQ. For this and several other reasons, it is one of the most relevant in the world.
In addition, this market brings together shares of several companies of global importance and a broad portfolio/asset portfolio. There are over 8,000, including stocks, mutual funds, and bonds. Therefore, it offers multiple ways to invest and monetize the portfolio.
What are the advantages of investing in the US?
Due to the strength of the US investment market , investing in US-related assets can bring a number of benefits to the investor.
Look at the main examples:
- Exposure to the world’s largest economy;
- Portfolio protection against the devaluation of the real;
- Greater portfolio/portfolio diversification opportunities and;
- Exposure to lower volatility in relation to the Brazilian market.
9 tips and possibilities on how you can invest in the US
If you want to know how to invest in the US to reap all the benefits, check out the 9 ways below!
1. Buy shares in US companies
Buying shares in American companies is one of the best alternatives for investing in the USA. Shares of large companies are traded daily on American stock exchanges. For example Amazon, Apple, Google, Microsoft and other companies with strong market value.
This practice improves the chances of diversifying the investment portfolio with internationally consolidated companies. Furthermore, stock returns tend to be high and safe over the long term. After all, the dollar is a strong currency and the US economy is stable.
2. Make investments in US real estate
The booming real estate market, especially in the states of Florida and Miami, has attracted investors from all over the world, including Brazilians. In Orlando, for example, there are options for homes, businesses and even summer homes for those who earn money with seasonal rentals.
To give you an idea, it is possible to find houses in Orlando starting at R$ 200,000. Prices vary, of course, depending on the location and structure of the property in the city. To successfully invest in the USA, it is important to have the support of North American real estate agents and to know the country’s real estate market well.
Some aspects should also be considered, such as taxes for the purchase of the property and the cost of maintaining the property. In order to increase income, foreign investors buy real estate for short-term rentals. Thus, they earn a fixed income with the rent paid in dollars.
3. Invest in hedge funds
Another way to invest in the US is through hedge funds. Such an application is usually composed of various assets, such as stocks, foreign exchange, government bonds or fixed income securities. To guarantee satisfactory returns, this fund is managed by a specialized manager.
Some multimarket funds, such as XP Macro, include shares of American companies in their portfolio. But it is clear that this type of investment is suitable for investors with a bold or moderate profile.
4. Invest in American franchises
Entrepreneurship is a risky alternative, but it can generate high income. North American franchises are a great option to reduce risk and prosper in the country. This business model offers several advantages, such as a business plan, management assistance and a well-known brand in the United States.
First, you need to make an initial investment to buy the franchise. Upon opening, the franchisee pays business fees annually. The good news is that there are a large number of Brazilian franchises in the US. This undoubtedly facilitates the process of investing in the US using this method.
5. Make application in the EB-5 program
Currently, the EB-5 program encourages access to foreign capital to start businesses in the United States. To gain access, investors must make an initial contribution of $500,000 to their new business or project. Also, present a business plan that guarantees the creation of at least 10 jobs in the country.
The main attraction of this type of investment is the opportunity to operate in a country with a solid economy and multiple business opportunities. It also guarantees the EB-5 residency visa for the investor and their family members. In this way, it is possible to live, study and work in the United States.
6. Trading Exchange Traded Funds (ETFs)
Another way to invest abroad is ETFs, also known as index funds. These are investment funds whose objective is to replicate the performance of a financial market indicator.
Several funds of this type can be found on American stock exchanges. In the US, they can pay dividends and help generate passive income.
If you want to invest without withdrawing your capital from Brazil, the ETFs traded on the B3 (Bolsa de Valores do Brasil) will help. This is because there are index funds that track US indicators and provide indirect exposure to the US economy.
For example, two popular options are SPX11 and IVVB11. These ETFs traded on B3 replicate the performance of the S&P 500 index. This means that it brings together the 500 largest publicly traded companies that are traded on the New York Stock Exchange.
7. Invest in Brazilian Depositary Receipts (BDR)
If you want to invest in American assets without taking funds from Brazil, this is also possible through BDRs. They are also known as securities certificates and are traded on B3.
In practice, they are linked to various international investments. For example, they can be linked to foreign stocks, US ETFs, bonds, Real Estate Investment Trusts (REITs), etc.
However, you don’t own the assets, you own a certificate associated with them. However, there is an outcome risk so that you can benefit from movements in both the benchmark and the dollar.
8. Invest in Investment Funds Abroad
There are also other types of mutual funds with exposure to foreign assets: they can include stocks, fixed income and crypto assets, among others. In addition, these funds have different strategies and risk levels.
Therefore, it is worth reviewing your broker’s portfolio/portfolio to examine the available alternatives. It is also worth noting that some international funds are only available to qualified investors. That is, those who have allocated more than US$500,000 or have professional certification to work in the financial market.
9. Performing Transactions in Exchange Funds
Finally, it pays to know the change. Its negotiations are pegged to foreign currencies and it is possible to find alternatives pegged to the dollar.
In this case, investments are made in assets and derivatives that follow the exchange variation. Thus, there is the possibility of indirect exposure to the US economy.