The BB ETF Ibovespa B3 BR+ (BRAZ11) is a Brazilian exchange-traded fund designed to track the performance of the Ibovespa B3 BR+ Index, a total-return benchmark that measures some of the most liquid and representative securities of Brazilian companies traded on the B3. Managed by BB Asset Management, the ETF trades under the ticker BRAZ11 on the B3 and provides diversified exposure to the Brazilian equity market.

Classified as an equity ETF, BRAZ11 follows a passive management strategy. The fund seeks to replicate the performance of the Ibovespa B3 BR+ primarily through full replication of the benchmark portfolio, subject to the diversification and portfolio composition requirements established in its governing documents.

The underlying index consists of stocks, units, and Brazilian Depositary Receipts (BDRs) issued by Brazilian companies listed on the B3. For BDRs to qualify, the underlying security must have its primary listing on a U.S. stock exchange. This structure allows the benchmark to provide broader representation of Brazilian companies than traditional domestic-equity indexes limited to locally listed shares.

Composition / Exposure Profile

BRAZ11 provides exposure primarily to:

• Highly liquid and representative Brazilian companies.

• Stocks and units listed on the B3.

• BDRs of eligible Brazilian companies with underlying securities primarily listed in the United States.

• Multiple sectors of the Brazilian economy.

• The broader Brazilian equity market.

At least 95% of the fund's net assets must be allocated to securities included in the Ibovespa B3 BR+ or to net futures positions designed to reflect the benchmark's performance. Remaining assets may be invested in instruments such as Brazilian government securities, fixed-income securities issued by financial institutions, repurchase agreements, derivatives, and other eligible investment funds or ETFs, subject to the fund's investment policy.

Because the benchmark targets securities with high tradability and market representation, BRAZ11's performance is primarily influenced by the largest and most actively traded Brazilian companies. Returns are also affected by domestic economic growth, interest rates, inflation expectations, commodity cycles, corporate earnings, and investor sentiment toward Brazilian equities.

Structure and Costs

BRAZ11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are conducted through authorized participants, with creation and redemption orders subject to the procedures established by the fund.

The fund currently charges a total annual fee of 0.10%. This corrects the information in the Portuguese source text, which states that the ETF has no annual total fee. The fund does not charge a performance fee.

BRAZ11 does not make recurring income distributions. Dividends and other proceeds received from portfolio holdings are incorporated into the fund's net assets rather than distributed directly to shareholders. The ETF has an indefinite term.

History and Evolution of the ETF

The BB ETF Ibovespa B3 BR+ was launched in 2024 to provide investors with exchange-traded exposure to the Brazilian equity market through the Ibovespa B3 BR+ Index.

Since its launch, BRAZ11 has joined the range of broad-market Brazilian equity ETFs available on the B3. Its benchmark expands the investable universe to include eligible BDRs alongside locally listed stocks and units, providing an additional approach to tracking representative Brazilian companies.

Over time, the ETF's performance is expected to reflect movements across its underlying Brazilian equities and BDRs, influenced by domestic monetary policy, economic growth, corporate earnings, commodity prices, global risk appetite, and broader conditions in Brazil's capital markets.

Additional Information

BB ETF Ibovespa B3 BR+ (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $23.47 million.

Over the past 12 months, BB ETF Ibovespa B3 BR+ recorded a return of 12.38%, with its price trading between $10.61 and $13.56 during the same period.

The ETF is traded under the ticker BRAZ11.