Nu BDRs to Join Brazil Ibovespa Index in 2027

Nu Holdings is among the primary candidates to join Brazil's benchmark Ibovespa index in the first half of 2027. Brazilian exchange operator B3 announced the shift to allow BDRs of Brazilian companies into the index. The exact date remains to be determined.

Admission will require meeting standard Ibovespa liquidity criteria, which B3 does not plan to change. To address investment limits for pension funds, B3 established a 10% aggregate ceiling for all BDRs within the index. The exchange stated that the sum of exposures to these assets will stay below this threshold to adhere to pension regulations.

Financial firms dominate the potential BDR additions alongside Nu, including XP, Stone, and PagBank, as well as meatpacker JBS. In the EWZ ETF, the financial sector holds a 35.8% weighting, compared to roughly 29% currently in the Ibovespa.

Nu already carries a 9.32% weighting in the EWZ ETF, ranking second only to Vale at 9.8%. By comparison, Itaú holds 7.84% and XP accounts for 1.5% in the fund. Uncertainty remains over whether Mercado Livre will qualify due to its corporate headquarters in Montevideo.