The iShares Bovespa BR+ Cap 5% ETF (CAPE11) is a Brazilian exchange-traded fund designed to track the performance of the Bovespa B3 BR+ Cap 5% Index, a benchmark composed of stocks, units, and BDRs of Brazilian companies, with each issuer capped at 5% of the portfolio.

Managed by BlackRock Brasil Gestora de Investimentos Ltda., the ETF trades under the ticker CAPE11 on the B3. Classified as an equity ETF, CAPE11 follows a passive management strategy and provides diversified exposure to the Brazilian equity market, including BDRs of Brazilian companies whose underlying shares are primarily listed in the United States.

The fund seeks to replicate the performance of its benchmark, whose methodology limits the combined weight of securities associated with a single company to 5% at periodic rebalancings. This approach is designed to reduce concentration in the largest issuers while maintaining broad exposure to eligible Brazilian equities.

The Bovespa B3 BR+ Cap 5% Index is a total return index, meaning its performance reflects both changes in constituent prices and distributions made by the underlying companies.

Composition / Exposure Profile

CAPE11 provides exposure primarily to:

• Brazilian stocks and units.

• BDRs of Brazilian companies primarily listed in the United States.

• Multiple sectors of the Brazilian economy.

• A portfolio with a maximum 5% weight per issuer.

• The Brazilian equity market.

The eligible universe of the Bovespa B3 BR+ Cap 5% Index consists of stocks, units, and BDRs of Brazilian companies that meet the B3's liquidity and representativeness requirements. For BDRs, the underlying security must have its primary listing on a U.S. stock exchange.

The strategy's defining feature is its concentration limit. At inclusion and periodic rebalancings, securities associated with a single company cannot collectively represent more than 5% of the index. This reduces the influence of the largest individual issuers compared with benchmarks that allow higher company-level concentrations.

Structure and Costs

CAPE11 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 of 0.30%.

CAPE11 follows a reinvestment distribution policy, meaning dividends and other proceeds received from portfolio holdings are incorporated into the fund's net asset value rather than periodically distributed to shareholders. The ETF has an indefinite term.

History and Evolution of the ETF

The iShares Bovespa BR+ Cap 5% ETF was launched in 2025 to provide investors with diversified exposure to Brazilian equities while limiting concentration at the issuer level.

CAPE11 is based on the Bovespa B3 BR+ Cap 5% Index, also introduced in 2025. The strategy expanded the range of Brazilian equity ETFs by applying a 5% company-level cap, reducing the influence of the largest individual issuers while retaining broad exposure to the domestic equity market.

Since its launch, CAPE11 has provided exposure to a broad portfolio of Brazilian companies. Its performance reflects both overall conditions in the Brazilian equity market and the relative performance of the companies and sectors represented in the benchmark.

Additional Information

iShares Bovespa BR+ Cap 5% Fundo de Índice (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $18.21 million.

Over the past 12 months, iShares Bovespa BR+ Cap 5% Fundo de Índice recorded a return of 16.04%, with its price trading between $121.10 and $157.05 during the same period.

The ETF is traded under the ticker CAPE11.