The It Now Ibovespa B3 BR+ ETF (B3BR11) is a Brazilian exchange-traded fund designed to track the performance of the Ibovespa B3 BR+ Index, a total-return benchmark composed of highly liquid and representative securities issued by Brazilian companies. Managed by Itaú Asset Management, the ETF trades under the ticker B3BR11 on the B3 and provides diversified exposure to the Brazilian equity market.

Classified as an equity ETF, B3BR11 follows a passive management strategy. The fund seeks to replicate the performance of the Ibovespa B3 BR+ by investing primarily in securities included in the benchmark portfolio.

The underlying index includes shares, units, and Brazilian Depositary Receipts (BDRs) of Brazilian companies listed on the B3. For BDRs to be eligible, the underlying security must have its primary listing on a U.S. stock exchange. Eligible securities are selected according to liquidity and other requirements established by the B3, while index weights are based on free-float market capitalization.

Composition / Exposure Profile

B3BR11 provides exposure primarily to:

• Highly liquid and representative Brazilian companies.

• Large- and mid-cap Brazilian equities.

• Shares and units listed on the B3.

• Eligible BDRs of Brazilian companies with primary listings in the United States.

• Multiple sectors of the Brazilian economy.

• The broader Brazilian equity market.

One of the main characteristics of the Ibovespa B3 BR+ is its broader investable universe compared with benchmarks restricted to companies whose shares are primarily listed in Brazil. By allowing eligible BDRs, the index can incorporate Brazilian companies whose primary equity listings are in the United States while maintaining exposure through securities traded on the B3.

Sector allocations vary according to the composition and periodic rebalancing of the benchmark. As a broad Brazilian equity strategy, B3BR11's performance is influenced by domestic economic growth, interest rates, inflation expectations, commodity prices, corporate earnings, monetary policy, and investor sentiment toward Brazilian assets.

Structure and Costs

B3BR11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are carried out through the ETF structure, helping maintain alignment between the fund's market price and its net asset value (NAV).

The fund charges a total annual fee of 0.10% and does not charge a performance fee. At launch, Itaú Asset also highlighted that the ETF could lend up to 70% of its portfolio securities, potentially generating additional income for the fund.

B3BR11 does not make recurring income distributions. Dividends and other proceeds received from portfolio holdings are incorporated into the fund rather than distributed directly to shareholders. The ETF has an indefinite term.

History and Evolution of the ETF

The It Now Ibovespa B3 BR+ ETF was launched in 2024 by Itaú Asset Management to provide investors with a low-cost exchange-traded vehicle designed to replicate the Ibovespa B3 BR+ Index.

The ETF was introduced as part of Itaú Asset's expansion of its index fund lineup and offers an alternative approach to broad Brazilian equity exposure by incorporating eligible BDRs alongside locally listed shares and units. This structure allows the benchmark to represent Brazilian companies that may have their primary equity listings outside Brazil.

Since its launch, B3BR11's performance has reflected movements across the securities included in the Ibovespa B3 BR+, with results influenced by Brazil's monetary policy, domestic economic conditions, corporate earnings, commodity cycles, global risk appetite, and the performance of Brazilian companies represented through BDRs.

Additional Information

It Now Ibovespa B3 BR+ ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $9.77 million.

Over the past 12 months, It Now Ibovespa B3 BR+ ETF recorded a return of 13.68%, with its price trading between $52.92 and $67.52 during the same period.

The ETF is traded under the ticker B3BR11.