The BB B3 Diversity Index ETF (DVER11) is a Brazilian exchange-traded fund designed to track the performance of the B3 Diversity Index (IDIVERSA B3), a benchmark developed by the B3 to measure the performance of listed companies that stand out according to gender and racial diversity criteria.

Managed by BB Asset Management, the ETF trades under the ticker DVER11 on the B3 and provides diversified exposure to Brazilian equities through a strategy that incorporates diversity, equity, and inclusion considerations into constituent selection and weighting.

Classified as an equity and sustainable investment ETF, DVER11 follows a passive management strategy. The fund seeks to fully replicate the composition of the IDIVERSA B3 and must maintain at least 95% of its net assets, individually or collectively, in securities included in the benchmark or in net futures positions designed to reflect its performance.

The IDIVERSA B3 was developed to measure the performance of companies with greater representation of historically underrepresented groups, particularly women, Black people, and Indigenous people, across their organizational structures.

Composition / Exposure Profile

DVER11 provides exposure primarily to:

• Brazilian companies assessed according to diversity criteria.

• Companies across multiple sectors of the Brazilian economy.

• Businesses with greater representation of women, Black people, and Indigenous people.

• An equity strategy incorporating diversity, equity, and inclusion criteria.

• The Brazilian equity market.

The IDIVERSA B3 incorporates information related to workforce composition and corporate governance bodies to assess diversity within eligible companies. Constituent selection therefore goes beyond conventional factors such as sector, company size, or market capitalization by incorporating measures of representation among historically underrepresented groups.

At the time DVER11 was launched in 2023, the benchmark consisted of 79 securities from 75 companies across ten economic sectors, providing diversified exposure to the Brazilian equity market. The number and composition of constituents can change over time as the index is periodically reviewed.

Structure and Costs

DVER11 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.

BB Asset currently reports a total annual fee of 0.20% for DVER11. The fund does not charge a performance fee. The ETF has an indefinite term. Its portfolio is structured to fully replicate the composition of the IDIVERSA B3, net of applicable fund fees and expenses.

DVER11 does not provide direct foreign currency exposure because its strategy focuses on securities traded in the Brazilian market. The B3 also classifies the ETF as a product whose price does not directly fluctuate with foreign exchange rates.

History and Evolution of the ETF

The BB B3 Diversity Index ETF was launched in 2023 by BB Asset Management as the first ETF designed to track the IDIVERSA B3.

The IDIVERSA B3 itself was introduced by the B3 in 2023 as the first Latin American index to combine gender and racial diversity criteria. Its creation expanded the Brazilian exchange's ESG index family by introducing a benchmark specifically focused on the representation of historically underrepresented groups within listed companies.

Since its launch, DVER11 has provided exchange-traded access to this strategy, with its portfolio evolving alongside periodic changes to the IDIVERSA B3 and the diversity metrics of eligible Brazilian companies.

Additional Information

BB B3 Diversity Index ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $59.42 million.

Over the past 12 months, BB B3 Diversity Index ETF recorded a return of 11.11%, with its price trading between $11.20 and $14.44 during the same period.

The ETF is traded under the ticker DVER11.