The BTG Pactual S&P/B3 Brazil ESG ETF (ESGB11) is a Brazilian exchange-traded fund designed to track the performance of the S&P/B3 Brazil ESG Index, a benchmark composed of Brazilian companies that meet environmental, social, and corporate governance (ESG) criteria.

Managed by BTG Pactual Asset Management, the ETF trades under the ticker ESGB11 on the B3. Classified as an equity ETF, ESGB11 follows a passive management strategy and provides diversified exposure to the Brazilian equity market through a methodology that incorporates sustainability considerations into constituent selection and weighting.

The fund seeks to replicate the performance of the S&P/B3 Brazil ESG Index. The benchmark follows a rules-based approach to determine eligible companies and assigns constituent weights according to ESG performance measured under S&P Global's methodology.

This approach is designed to maintain broad exposure to Brazilian equities while incorporating environmental, social, and governance considerations into portfolio construction.

Composition / Exposure Profile

ESGB11 provides exposure primarily to:

• Brazilian companies assessed according to ESG criteria.

• Multiple sectors of the Brazilian economy.

• Companies with eligible S&P Global ESG Scores.

• An equity strategy incorporating sustainability criteria.

• The Brazilian equity market.

The S&P/B3 Brazil ESG Index starts with a broad universe of Brazilian companies and applies several eligibility screens. Companies can be excluded based on their involvement in certain business activities, their alignment with the principles of the United Nations Global Compact, and the availability of an eligible S&P Global ESG Score.

Following these screens, eligible constituents are weighted according to their ESG scores, subject to constraints established by the index methodology. This differentiates the strategy from traditional benchmarks whose constituent weights are determined primarily by market capitalization.

Structure and Costs

ESGB11 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 a total annual management fee of 0.50% and does not charge a performance fee.

ESGB11 does not make recurring income distributions. Dividends and other proceeds generated by portfolio companies are incorporated into the fund's net asset value. The ETF has an indefinite term.

History and Evolution of the ETF

The BTG Pactual S&P/B3 Brazil ESG ETF was launched in 2020 to provide investors with exchange-traded exposure to Brazilian equities through a strategy incorporating environmental, social, and governance criteria.

The ETF was introduced amid the expansion of ESG-oriented investment strategies in Brazil and followed the launch of the S&P/B3 Brazil ESG Index itself in 2020.

Since its launch, ESGB11 has evolved alongside changes in the S&P/B3 Brazil ESG Index and the sustainability assessments applied to eligible companies. Its performance reflects both broader conditions in the Brazilian equity market and the relative performance of the companies and sectors selected and weighted under the benchmark's ESG methodology.

Additional Information

BTG Pactual S&P/B3 Brazil ESG ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $16.50 million.

Over the past 12 months, BTG Pactual S&P/B3 Brazil ESG ETF recorded a return of 8.60%, with its price trading between $106.63 and $135.99 during the same period.

The ETF is traded under the ticker ESGB11.