Investors are increasingly turning to companies in essential services and infrastructure sectors as safer investment options during an election year in Brazil.
In Brazil, the search for the ideal asset to build a stock portfolio is often challenging; however, experts recommend a focus on shares in infrastructure and essential services companies to minimize risks. These companies often provide reliable dividend payments and predictable cash flow, leading to returns that generally exceed the average of the Ibovespa index.
The Public Utility Index (Util), which includes stocks from sectors such as electricity, sanitation, and natural gas, has shown considerable growth, outperforming the Ibovespa in 2025. While the main Brazilian stock index, Ibovespa, increased by 34% last year, the Util index recorded an impressive 65% growth, highlighting the strength of essential services in uncertain economic times.
Though the Util index was launched in 2012 by B3, the Exchange-Traded Fund (ETF) that replicates its performance was introduced only recently, giving investors a newer avenue to benefit from the rising relevance and financial stability of essential services during the politically charged atmosphere of an election year in Brazil.
