The Nu Ibovespa Smart Low Volatility ETF (LVOL11) is a Brazilian exchange-traded fund designed to provide exposure to Brazilian equities with lower historical volatility through investments linked to the Ibovespa Smart Low Volatility B3 Index. The ETF is managed by Nu Asset Management Ltda. and trades under the ticker LVOL11 on the B3.

Classified as an equity ETF, the fund follows a passive management strategy. Its objective is to replicate the composition and weighting of the benchmark, prioritizing stocks with lower historical price fluctuations in an effort to reduce portfolio volatility while maintaining exposure to the Brazilian equity market.

Composition / Exposure profile

LVOL11 provides exposure primarily associated with:

• Low-volatility Brazilian equities.

• Utility companies.

• Financial-services businesses.

• Consumer-staples companies.

• Defensive equity strategies.

• Quantitative factor investing.

• Brazilian equity markets.

• Risk-reduction investment approaches.

The underlying exposure may include companies such as Taesa, Engie Brasil, Porto, Klabin, and other constituents selected according to the benchmark’s low-volatility methodology.

The ETF seeks to reflect the performance of a benchmark that applies quantitative criteria designed to reduce portfolio volatility relative to the traditional Ibovespa while maintaining diversified exposure to Brazilian equities.

Structure and costs

LVOL11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption occur through authorized participants, helping to align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee of approximately 0.50% per year and does not apply a performance fee. LVOL11 does not provide recurring income distributions, as dividends and other proceeds received from underlying holdings are reinvested into the portfolio. Settlement occurs on a T+2 basis, and the fund has an indefinite duration.

History and evolution of the ETF

The Nu Ibovespa Smart Low Volatility ETF was launched in 2024 with the objective of offering an alternative to the traditional Ibovespa by focusing on stocks with lower historical volatility.

Since inception, the fund has become part of the growing factor-based ETF segment in Brazil, reflecting increasing investor interest in quantitative strategies designed to reduce portfolio risk.

In recent periods, LVOL11 has reflected the performance of lower-volatility Brazilian equities, influenced by macroeconomic conditions, interest-rate movements, sector-specific developments, and broader trends within the domestic equity market.

Additional Information

Nu Ibovespa Smart Low Volatility ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $27.84 million.

Over the past 12 months, Nu Ibovespa Smart Low Volatility ETF recorded a return of 31.10%, with its price trading between $105.05 and $153.56 during the same period.

The ETF is traded under the ticker LVOL11.