The BTG Pactual Teva LFs DI ETF (LFIN11) is a Brazilian exchange-traded fund designed to track the performance of the Teva LFIN DI Index, a fixed-income benchmark composed of senior financial notes (Letras Financeiras, or LFs) issued by Brazilian financial institutions and linked to the DI rate.

Managed by BTG Pactual Asset Management, the ETF trades under the ticker LFIN11 on the B3 and provides diversified exposure to the Brazilian bank credit market through an exchange-traded investment vehicle.

Classified as a fixed-income ETF, LFIN11 follows a passive management strategy. The fund invests at least 95% of its net assets in securities included in the Teva LFIN DI Index, in any proportion, or in long futures positions designed to replicate the benchmark's performance. The remaining portion may be allocated to other investments permitted under the fund's investment policy.

Composition / Exposure Profile

LFIN11 provides exposure primarily to:

• Senior financial notes (Letras Financeiras).

• Fixed-income securities linked to the DI rate.

• Brazilian financial institutions.

• Private bank credit.

• Issuers classified within the S1, S2, and S3 segments established by the Central Bank of Brazil.

The Teva LFIN DI Index selects senior financial notes registered in Brazil's over-the-counter market and linked to the DI rate, either as a percentage of DI or DI plus a spread. Eligible securities must have a defined maturity and cannot provide for intermediate coupon or principal payments.

One of the benchmark's distinguishing characteristics is its hold-to-maturity approach: eligible securities generally remain in the portfolio until maturity, helping reduce portfolio turnover. The methodology also applies weighting rules intended to maintain issuer diversification and keep the portfolio's average maturity above 720 days.

Unlike Brazilian fixed-income ETFs that invest in government securities linked to the Selic rate, LFIN11 provides exposure to the credit risk of financial institutions. Its performance is therefore influenced by the DI rate, bank credit spreads, issuer credit quality, liquidity conditions, and Brazilian monetary policy.

Structure and Costs

LFIN11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are carried out through authorized participants according to the procedures established by the fund.

The ETF charges an annual management fee of 0.30%, in addition to other operating expenses and charges established in its governing documents.

LFIN11 does not charge a performance fee. Income and other returns generated by the underlying securities are incorporated into the fund's net asset value. The ETF has an indefinite term.

History and Evolution of the ETF

The BTG Pactual Teva LFs DI ETF was launched in 2025, to provide investors with exchange-traded access to Brazilian financial notes issued by major financial institutions.

The ETF expanded the range of fixed-income products available on the B3 by providing diversified access to a segment of private bank credit traditionally used by institutional investors. Its benchmark combines DI-linked securities from multiple eligible issuers with a methodology designed to reduce portfolio turnover and maintain diversification.

Since its launch, LFIN11's performance has been primarily influenced by the DI rate, credit spreads across Brazilian financial institutions, monetary policy decisions by the Central Bank of Brazil, issuer credit conditions, and liquidity across the domestic fixed-income market.

Additional Information

BTG Pactual Teva LFs DI ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $57.19 million.

Over the past 12 months, BTG Pactual Teva LFs DI ETF recorded a return of -, with its price trading between $77.11 and $114.30 during the same period.

The ETF is traded under the ticker LFIN11.