The Bradesco Ibovespa ETF (BOVB11) is a Brazilian exchange-traded fund designed to track the performance of the Ibovespa (IBOV), the main benchmark for the Brazilian equity market. Managed by Bradesco Asset Management (BRAM), the ETF trades under the ticker BOVB11 on the B3 and provides diversified exposure to some of the most liquid and representative companies in Brazil.

Classified as an equity ETF, BOVB11 follows a passive management strategy. The fund seeks to replicate the performance of the Ibovespa by investing primarily in the stocks and units included in the benchmark portfolio, following the weights established by the index methodology.

The Ibovespa is a total-return index composed of securities issued by companies listed on the B3 that meet specific liquidity, trading activity, and eligibility requirements. Its composition is periodically reviewed to maintain representation of the most actively traded segments of the Brazilian equity market.

Composition / Exposure Profile

BOVB11 provides exposure primarily to:

• Highly liquid Brazilian equities.

• Large- and mid-cap companies.

• Stocks and units listed on the B3.

• Financial institutions.

• Energy and commodity-related companies.

• Utilities, industrials, and consumer businesses.

• The broader Brazilian equity market.

Because BOVB11 replicates the Ibovespa, its portfolio provides exposure across several major sectors of the Brazilian economy. Financials, energy, materials, utilities, industrials, and consumer-related companies have historically represented important portions of the benchmark, although sector allocations change according to periodic index rebalancing.

The Ibovespa is one of the most widely followed indicators of Brazilian equity-market performance and serves as a benchmark for both institutional and individual investors.

As a result, BOVB11's performance is influenced by domestic economic growth, interest rates, inflation expectations, monetary policy, corporate earnings, commodity prices, exchange-rate movements, and global investor sentiment toward emerging markets.

Structure and Costs

BOVB11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are carried out through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges an annual management fee of 0.20% and does not charge a performance fee.

BOVB11 does not make recurring income distributions. Dividends and other proceeds received from portfolio holdings are incorporated into the fund's net asset value rather than distributed directly to shareholders. The ETF has an indefinite term.

History and Evolution of the ETF

The Bradesco Ibovespa ETF was launched in 2019, with trading beginning on the B3 on June 26, 2019. The fund marked Bradesco Asset Management's entry into Brazil's ETF market and was introduced as another exchange-traded vehicle for investors seeking to replicate the performance of the Ibovespa.

At launch, BOVB11 became the fourth ETF available in Brazil designed to track the Ibovespa. The product expanded competition among broad-market Brazilian equity ETFs and was introduced with a 0.20% annual management fee.

Since its inception, BOVB11 has provided systematic exposure to the Brazilian equity market through a portfolio that evolves alongside changes in the Ibovespa. Its performance has reflected Brazil's economic and monetary cycles, corporate earnings, commodity-market conditions, political and fiscal developments, and changes in global risk appetite.

Additional Information

Bradesco Ibovespa ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $2.40 billion.

Over the past 12 months, Bradesco Ibovespa ETF recorded a return of 9.88%, with its price trading between $157.16 and $214.50 during the same period.

The ETF is traded under the ticker BOVB11.