Region Focus: Investing in Latin America (Brazil, Mexico & Beyond)
Emerging markets are evolving, and Latin America (LATAM) is at the center of this shift. Long seen as volatile or politically uncertain, countries like Brazil, Mexico, Chile, and Colombia are now drawing attention for their tech-savvy populations, commodities exposure, improved fiscal policy, and growing interest from global investors seeking international diversification and returns beyond U.S. borders.
This deep dive breaks down how to invest in LATAM for foreigners, how LATAM residents can access global markets, the function of local exchanges like Bovespa and Bolsa Mexicana, and alternative routes like ETFs, ADRs, and thematic portfolios (ESG, halal, etc.).
🌎 Why LATAM Is Gaining Investor Attention in 2025
Let’s start with the macro picture:
1. Demographics + Digitization
With large, young populations (especially in Brazil and Mexico), LATAM has become fertile ground for fintech, e-commerce, and education tech. Brazil alone has over 215 million people, 70% of whom are under age 40. Digital banking, crypto adoption, and app-based services have exploded.
2. Commodities & Energy
LATAM is rich in natural resources. Brazil and Argentina are agricultural giants, Chile is the world’s top copper exporter, and Mexico is a critical part of North America’s energy and manufacturing chain.
3. Emerging Markets Investment 2025
As U.S. growth cools and inflation persists, investors are reallocating capital to higher-growth regions. LATAM fits the bill — high growth, currency arbitrage, and discounted valuations compared to U.S. and European equities.
How to Invest in US stocks from LATAM - Crystal Ball Markets
🇧🇷 Investing in Brazil via B3 (Bovespa)
What is B3?
B3 – Brasil Bolsa Balcão is the main exchange in Brazil. It combines equities, derivatives, commodities, and government bonds under one roof.
Key sectors include:
- Energy: Petrobras (PBR), Eletrobras
- Finance: Itaú Unibanco, Banco Bradesco
- Consumer Goods: Ambev, Magazine Luiza
- Agribusiness: JBS, BRF
How Foreigners Can Invest in Brazil
Option 1: Open a Local Brokerage Account
You’ll need a CPF (Cadastro de Pessoas Físicas) – Brazil’s tax ID. Most international brokers with a Brazil presence (like XP Investimentos, Guide, or BTG Pactual) allow non-residents to apply online with passport, address proof, and KYC documents.
Option 2: Buy ADRs on U.S. Exchanges
Brazilian companies like Vale (VALE) and Petrobras (PBR) trade on U.S. markets as American Depository Receipts (ADRs). This is ideal for U.S.-based investors who want Brazil exposure without dealing with cross-border tax issues or paperwork.
Option 3: ETFs & Mutual Funds
- EWZ – iShares MSCI Brazil ETF is a go-to option.
- Actively managed emerging markets funds also hold Bovespa-listed stocks.
Don’t forget to choose a user-friendly, globally connected trading platform to access these instruments from anywhere in the world.
🇲🇽 Mexico: Investing via Bolsa Mexicana de Valores
What is Bolsa Mexicana?
The BMV (Bolsa Mexicana de Valores) is Latin America’s second-largest stock exchange. Its index, IPC, tracks major companies such as:
- América Móvil (Telecom, owned by Carlos Slim)
- Grupo Bimbo (largest bakery company in the world)
- Cemex (construction materials)
How Foreigners Can Invest in Mexican Equities
Open a Mexican Brokerage Account
Firms like GBM, Actinver, and Banorte offer foreigner access with minimal capital requirements. You’ll need to submit:
- Passport and ID
- Proof of address
- Bank account statement (may require MXN-conversion)
U.S.-Listed ADRs
América Móvil trades as AMX on the NYSE. Cemex trades as CX. These ADRs make it easy to participate without converting to pesos.
ETFs
- EWW – iShares MSCI Mexico ETF is a top option.
- Diversified ETFs covering LATAM also allocate 30–50% to Mexican equities.
🌱 ESG, Halal, and Thematic Investing in LATAM
ESG Investing in LATAM
Environmental, Social, Governance (ESG) standards are gaining momentum, particularly in Chile and Brazil. Companies are adopting sustainability frameworks, improving transparency, and reporting on emissions and labor standards.
Top ESG ETFs:
- XSGG – iShares ESG MSCI EM ETF (includes Brazil, Mexico)
- Brazilian local ESG indexes such as ISE B3
For newcomers, the Crystal Ball Markets Podcast offers ESG investing content tailored to emerging market realities.
Shariah-Compliant Investing in LATAM
Halal investment options are limited but growing. While no LATAM country has a fully developed Islamic finance framework, Brazil’s status as a halal food export leader is opening new doors. International halal-compliant ETFs with emerging markets exposure offer indirect access.
Search for:
- SPUS – SP Funds S&P 500 Shariah ETF
- Global sukuk (Islamic bonds) funds with LATAM allocations
📉 Inflation & Currency Risks: What to Know
Investing During Inflation in LATAM
LATAM has lived through inflation before — sometimes hyperinflation. That’s made its central banks more proactive. For example, Brazil’s central bank raised interest rates early and aggressively in 2022–2023, earning investor trust.
What to do:
- Look for real-return bonds or inflation-linked instruments (e.g., NTN-B in Brazil).
- Prefer export-heavy companies whose revenue is USD-linked.
- Use multi-currency platforms to hedge against BRL or MXN depreciation.
🌍 How LATAM Investors Can Access U.S. Stocks
It’s not just foreigners investing in LATAM—locals want access to dollar-based wealth and U.S. markets.
Step-by-Step for LATAM Residents
1. Use International Brokers
Firms like Interactive Brokers, Charles Schwab International, or TD Ameritrade allow LATAM residents to open USD accounts and invest in U.S. stocks, ETFs, REITs, and crypto.
2. Through Local Bank Partnerships
Some LATAM fintechs (e.g., Brazil’s Avenue or Mexico’s Kuspit) offer direct access to Nasdaq/NYSE via user-friendly apps.
3. Invest in Dollar-Denominated Funds
Multi-asset funds denominated in USD are available via global platforms or through LATAM private banks.
For a full walkthrough on this, check out the Crystal Ball Markets beginner podcast explaining how to invest in U.S. stocks from LATAM with step-by-step guides.
🎙️ Expert Insight: Maria Gutierrez, São Paulo-Based Advisor
We interviewed Maria Gutierrez, an independent wealth advisor based in Brazil:
“Don’t treat Latin America like one basket. Mexico’s risk profile is very different from Argentina’s. Peru and Chile are small but resource-rich. You need to think in country slices, not as a block.”
She also added:
“Currency volatility is part of the deal. But there’s a smart way to invest around it—through ADRs, USD-linked exporters, and hedged ETFs.”
International Diversification - Crystal Ball Markets
✅ Final Thoughts: Building a Smarter LATAM Portfolio
Latin America is no longer a market only for risk-chasers or short-term speculators. Smart investors are using it to:
- Hedge against inflation
- Diversify beyond the U.S. and EU
- Tap into ESG and halal opportunities in emerging markets
- Benefit from currency cycles and commodities exposure
🎯 Action Steps
- Explore a cutting-edge trading platform built for global investing — LATAM markets included.
- Listen to the Crystal Ball Markets podcast to level up your knowledge on international investing, ESG, halal, and more.
- Consider a hybrid strategy: combine direct investments via B3 or BMV with U.S.-listed ADRs and ETFs for flexibility and safety.
The global economy is shifting. Don’t miss your chance to invest where the next decade’s growth may come from.