The It Now Morningstar XT US Healthcare ETF (HTEK11) is a Brazilian exchange-traded fund designed to track the performance of the Morningstar US Exponential Technologies Healthcare Index, a benchmark composed of U.S.-traded companies with significant exposure to innovative technologies transforming the healthcare industry.

Managed by Itaú Asset Management, the ETF trades under the ticker HTEK11 on the B3 and provides Brazilian investors with exposure to companies operating at the intersection of healthcare and technological innovation.

Classified as an international thematic equity ETF, HTEK11 follows a passive management strategy. The fund seeks to replicate the performance of its benchmark, which consists of 50 companies selected by Morningstar based on their exposure to exponential technologies in healthcare, particularly the Bioinformatics and Neuroscience & Medicine themes.

Constituents are equally weighted at each annual rebalancing in December. This approach limits concentration in the largest companies by market capitalization and distributes exposure across a broader range of businesses involved in healthcare innovation.

Composition / Exposure Profile

HTEK11 provides exposure primarily to:

• Healthcare companies traded in the U.S. market.

• Bioinformatics.

• Neuroscience and medicine.

• Biotechnology and medical innovation.

• Technologies related to disease diagnosis and treatment.

• The U.S. equity market.

The Morningstar US Exponential Technologies Healthcare Index consists of 50 U.S.-traded stocks identified through Morningstar's proprietary research as having significant exposure to the Bioinformatics and Neuroscience & Medicine themes.

The strategy provides exposure to several areas of healthcare innovation, including companies involved in drug development, diagnostics, genetic research, medical technologies, and other products and services positioned to benefit from technological advances across the healthcare industry.

Unlike broad healthcare ETFs, HTEK11 specifically targets companies associated with technological transformation within the sector. Its performance is therefore influenced by scientific and technological advances, clinical trial results, regulatory approvals, research and development spending, interest rates, and broader conditions in the U.S. equity market. Currency movements can also affect returns for Brazilian investors.

Structure and Costs

HTEK11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are conducted according to the procedures established by the ETF structure.

The fund charges a total annual management fee of 0.50%, in addition to other operating expenses and charges established in its governing documents.

HTEK11 does not make recurring income distributions. Dividends and other proceeds generated by portfolio holdings are incorporated into the fund's net asset value. The ETF has an indefinite term.

History and Evolution of the ETF

The It Now Morningstar XT US Healthcare ETF was launched in 2021 to provide Brazilian investors with exchange-traded access to U.S. companies positioned at the intersection of healthcare and technological innovation.

HTEK11 was the first Brazilian ETF to use a Morningstar index as its benchmark, marking Morningstar's first index-based ETF partnership in the Brazilian market and expanding the range of international thematic strategies available on the B3.

Since its launch, HTEK11 has tracked the evolution of the companies included in the Morningstar US Exponential Technologies Healthcare Index. Its performance has been influenced by developments in biotechnology and medicine, technological innovation, regulatory conditions, healthcare research and development, interest-rate expectations, and broader conditions across the U.S. equity market.

Additional Information

It Now Morningstar XT US Healthcare ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $8.67 million.

Over the past 12 months, It Now Morningstar XT US Healthcare ETF recorded a return of 44.38%, with its price trading between $49.02 and $75.49 during the same period.

The ETF is traded under the ticker HTEK11.