The B-Index Morningstar Brazil Momentum ETF (BMMT11) is a Brazilian exchange-traded fund designed to track the performance of the Morningstar Brazil Target Momentum Index, a factor-based benchmark that targets Brazilian companies exhibiting positive recent performance and profitability characteristics.

Managed by Bradesco Asset Management (BRAM), the ETF trades under the ticker BMMT11 on the B3. Classified as an equity ETF, BMMT11 follows a passive management strategy and provides systematic exposure to the momentum factor within the Brazilian equity market.

The benchmark uses quantitative criteria to identify companies exhibiting positive price momentum and profitability characteristics. Its methodology considers metrics related to recent stock performance and return on equity (ROE), allowing the portfolio to target companies displaying both favorable price trends and fundamental profitability.

Unlike traditional broad-market indexes that may rely heavily on market capitalization or trading activity, BMMT11 follows a factor-based approach designed to systematically select Brazilian equities exhibiting momentum characteristics.

Composition / Exposure Profile

BMMT11 provides exposure primarily to:

• Brazilian equities.

• Companies exhibiting positive price momentum.

• Businesses meeting profitability criteria.

• Multiple sectors of the Brazilian economy.

• A systematic factor-based investment strategy.

• The Brazilian equity market.

The Morningstar Brazil Target Momentum Index seeks to identify Brazilian companies combining positive price dynamics with profitability metrics. According to the B3, companies with above-average return on equity and favorable price momentum characteristics may qualify for inclusion in the benchmark.

Structure and Costs

BMMT11 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 an annual management fee, in addition to other expenses and charges established in its governing documents.

BMMT11 does not make recurring income distributions. Dividends and other proceeds received from portfolio companies are incorporated into the fund's net asset value. The ETF has an indefinite term.

History and Evolution of the ETF

The B-Index Morningstar Brazil Momentum ETF was launched in 2023 by Bradesco Asset Management as part of a new lineup of Brazilian ETFs based on Morningstar indexes.

BMMT11 expanded the range of factor-based strategies available on the B3 by introducing a systematic approach focused on momentum while also incorporating company profitability into its selection process.

Since its launch, the ETF's portfolio has evolved according to the quantitative criteria of the Morningstar Brazil Target Momentum Index. Its performance reflects both broader conditions in the Brazilian equity market and the relative performance of companies selected by the benchmark's momentum and profitability methodology.

Additional Information

B-Index Morningstar Brazil Momentum ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $39.77 million.

Over the past 12 months, B-Index Morningstar Brazil Momentum ETF recorded a return of 15.42%, with its price trading between $130.75 and $172.10 during the same period.

The ETF is traded under the ticker BMMT11.