Mutual Fund, ETF and B3 Equity Flows Update: Brazil Equity Strategy | Latin America

Research evidence excerpt

Mutual Fund, ETF and B3 Equity Flows Update: Brazil Equity Strategy | Latin America

Update

July 6, 2026 06:26 PM GMT

Morgan Stanley México, Casa de Bolsa, S.A. de C.V.+MBrazil Equity Strategy | Latin America Nikolaj Lippmann

Equity Strategist

Mutual Fund, ETF and B3 Equity Nikolaj.Lippmann@morganstanley.comMorgan Stanley C.T.V.M. S.A.+ +1 212 761-2463

Julia M Leao Nogueira

Equity StrategistFlows Update Julia.Nogueira@morganstanley.com +55 11 3048-6046

Key Takeaways Exhibit 2 : The foreigners' net sale of BRL8bn

Foreigners sold -BRL7.8bn in B3 in June, roughly half of the May print (- in June is roughly half of the record observed

BRL14.9bn). in May

Foreigners net inflow to Brazilian stock market (BRLbn)

Local institutions were net buyers of Brazilian equity in June (+BRL1.8bn), 40

together with individuals (+BRL3.2bn). 30

In June, domestic equity funds experienced -BRL0.4bn net outflows, vs -BRL0.6bn 20

in May and +BRL0.3bn net inflows in April.

-

In June, total equities remained flat, while multimarket reported net outflows of - (10)

Jul/21:

(20) BRL-12bn Aug/23:BRL-13bn May/26:BRL-15bn

BRL14.3bn. Mar/20:

(30) BRL-23bn

Equity ETFs (both global and domestic-oriented) experienced net inflows of 2020 2021 2022 2023 2024 2025 2026

+BRL0.7bn in June, vs +BRL0.3bn in May. Source: B3 and Morgan Stanley Research

B3 Equity Flows -> Foreigners: June net sales smaller (~0.5x) vs May Exhibit 1 : Net inflow to Brazilian equity funds

breakdown (domestic x global funds)

Monthly. For the full month of June, foreigners' net sales reached -BRL7.8bn (vs. - Net inflow to Brazilian equity funds breakdown (BRLbn)

BRL14.9bn in May). Meanwhile, local institutions net purchases totalled +BRL1.8bn 4

(vs. +BRL13.3bn) and individuals net purchases +BRL3.2bn (vs. +BRL5.8bn). 2 2

0 0 0

0 -1 0 0