The Itaú Tesouro Selic ETF (LFTI11) is a Brazilian exchange-traded fund designed to track the performance of the Teva Tesouro Selic Index. Managed by Itaú Asset Management, the ETF trades on the B3 and provides investors with indirect exposure to Brazilian government bonds linked to the Selic interest rate.

Classified as a fixed-income ETF, LFTI11 follows a passive management strategy. The fund invests primarily in Brazilian Treasury Floating Rate Notes (Letras Financeiras do Tesouro, or LFTs), which are indexed to the Selic rate, with the objective of replicating the performance of its benchmark in the domestic market.

The portfolio consists of financial instruments linked to Brazil's benchmark interest rate, providing exposure to the country's sovereign fixed-income market. Holdings are periodically adjusted in accordance with the methodology established by the underlying index.

Composition / Exposure Profile

LFTI11 provides exposure primarily to Brazilian Treasury Floating Rate Notes (LFTs) linked to the Selic rate. The ETF seeks to replicate the performance of the Teva Tesouro Selic Index, a benchmark designed to track the returns of a portfolio of Brazilian government bonds that offer liquidity and predictable performance tied to the country's benchmark interest rate.

Structure and Costs

LFTI11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are carried out by authorized participants, helping to keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee of 0.15% per year, in addition to operational costs associated with trading the underlying securities.

LFTI11 does not charge a performance fee and does not make recurring income distributions. The fund has an indefinite term. Capital gains are taxed according to the rules applicable to Brazilian exchange-traded securities.

History and Evolution of the ETF

LFTI11 was launched to provide investors with easier access to Brazilian Treasury securities linked to the Selic rate through the Brazilian stock exchange, combining the characteristics of fixed-income investments with the liquidity of exchange-traded products.

Since its launch, the fund has become part of the growing range of fixed-income ETFs available on the Brazilian market, reflecting increasing demand for low-risk, highly liquid investment solutions. Its performance closely follows movements in the Selic rate and is primarily influenced by Brazil's monetary policy and broader macroeconomic conditions.

Additional Information

Itaú Tesouro Selic ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $3.04 billion.

Over the past 12 months, Itaú Tesouro Selic ETF recorded a return of -, with its price trading between $50.66 and $55.20 during the same period.

The ETF is traded under the ticker LFTI11.