The Galapagos Teva Tesouro Selic ETF (GLFT11) is a Brazilian exchange-traded fund designed to track the performance of the ITBR Selic – Teva Tesouro Selic Composite 30/70 Index, a fixed-income benchmark composed of Brazilian Treasury Floating Rate Notes (Letras Financeiras do Tesouro, or LFTs) linked to the Selic rate. Managed by Galapagos Capital, the ETF trades under the ticker GLFT11 on the B3 and provides investors with diversified exposure to Brazil's floating-rate sovereign bond market.

Classified as a fixed-income ETF, GLFT11 follows a passive management strategy. The fund seeks to replicate its benchmark through a portfolio composed exclusively of Brazilian federal government floating-rate securities, combining shorter- and longer-maturity LFTs.

The underlying index maintains a target allocation of approximately 30% to LFTs with remaining maturities of less than 3.5 years and 70% to securities with maturities exceeding 3.5 years. The portfolio is rebalanced semiannually to restore these target weights and maintain alignment with the benchmark methodology.

Composition / Exposure Profile

GLFT11 provides exposure primarily to:

• Brazilian Treasury Floating Rate Notes (LFTs).

• Short- and long-maturity government securities.

• Brazil's sovereign fixed-income market.

• Floating-rate investments linked to the Selic rate.

• Short-term interest-rate conditions in Brazil.

The benchmark is divided into two maturity segments. Approximately 30% is allocated to shorter-term LFTs with maturities below 3.5 years, while the remaining 70% is allocated to longer-term securities. Eligible bonds are also subject to liquidity requirements established by the index methodology.

The portfolio currently consists of ten government securities, providing exposure across different LFT maturities while maintaining the 30/70 allocation between the two maturity groups.

Because LFTs are floating-rate securities whose returns are linked to Brazil's benchmark interest rate, GLFT11 generally exhibits low price volatility compared with fixed-rate or long-duration inflation-linked government bond ETFs. Its returns tend to closely follow domestic short-term interest rates and the CDI benchmark.

As a result, the ETF's performance is primarily influenced by Brazil's Selic rate, monetary policy decisions by the Central Bank of Brazil, domestic liquidity conditions, and broader developments across the Brazilian sovereign fixed-income market.

Structure and Costs

GLFT11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are carried out through the ETF structure, helping keep the fund's market price aligned with its net asset value (NAV).

The fund charges a total annual fee of 0.19% and does not charge a performance fee. The ETF has D+1 settlement.

GLFT11 does not make recurring income distributions. Interest and other returns generated by the underlying government securities are incorporated into the fund's net asset value. The ETF has an indefinite term.

History and Evolution of the ETF

The Galapagos Teva Tesouro Selic ETF was launched in 2025 to provide investors with exchange-traded access to a diversified portfolio of Brazilian Treasury Floating Rate Notes linked to the Selic rate.

GLFT11 was structured around a 30/70 allocation between shorter- and longer-maturity LFTs, with semiannual rebalancing designed to preserve the maturity profile established by the underlying index. The strategy expanded the range of Brazilian fixed-income ETFs providing exposure to post-fixed government securities.

Since its launch, the ETF's performance has remained closely associated with the CDI and Brazil's benchmark interest rate, reflecting the floating-rate characteristics of its underlying securities. Over time, its returns are primarily influenced by changes in the Selic rate, monetary policy decisions, and conditions across Brazil's government bond market.

Additional Information

Galapagos Teva Tesouro Selic ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $5.00 million.

Over the past 12 months, Galapagos Teva Tesouro Selic ETF recorded a return of -, with its price trading between $100.16 and $112.85 during the same period.

The ETF is traded under the ticker GLFT11.