The BTG Pactual IMA-B ETF (PACG11) is a Brazilian exchange-traded fund designed to track the performance of the IMA-B Index, an ANBIMA fixed-income benchmark that measures the market-value performance of Brazilian federal government bonds linked to the IPCA inflation rate. 

Managed by BTG Pactual Asset Management, the ETF trades under the ticker PACG11 on the B3 and provides diversified exposure to Brazil's inflation-linked sovereign bond market.

Classified as a fixed-income ETF, PACG11 follows a passive management strategy. The fund seeks to replicate the performance of the IMA-B by investing at least 95% of its net assets in securities included in the benchmark, in any proportion, or in long futures positions designed to reflect the index's performance.

The IMA-B consists of Brazilian federal government inflation-linked bonds known as NTN-Bs, or Tesouro IPCA+ with semiannual interest payments. Eligible securities must have been issued through public offerings and have more than one month remaining until maturity.

Composition / Exposure Profile

PACG11 provides exposure primarily to:

• Brazilian inflation-linked government bonds (NTN-Bs / Tesouro IPCA+).

• Short-, medium-, and long-term maturities.

• Brazil's sovereign fixed-income market.

• IPCA-linked securities.

• Brazil's real interest-rate curve.

Unlike strategies concentrated exclusively on shorter- or longer-maturity inflation-linked bonds, the IMA-B represents the broader NTN-B market. The benchmark encompasses both the IMA-B 5 segment, composed of securities with maturities of up to five years, and the IMA-B 5+ segment, which covers bonds with maturities exceeding five years.

The theoretical portfolio is reviewed monthly to incorporate changes in the outstanding amount of eligible government securities. Individual bonds are weighted according to the volume of each security available in the market, allowing the benchmark to maintain broad representation of Brazil's inflation-linked sovereign debt market.

Structure and Costs

PACG11 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 ETF structure.

The fund charges an annual management fee of 0.19% and does not charge a performance fee.

PACG11 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 BTG Pactual IMA-B ETF was launched in 2024 to provide investors with exchange-traded access to a diversified portfolio of Brazilian inflation-linked government bonds.

PACG11 expanded BTG Pactual Asset Management's lineup of fixed-income ETFs by offering broad exposure to the IMA-B rather than targeting a specific maturity segment of Brazil's inflation-linked government bond market.

Since its launch, the ETF's performance has reflected movements across the Brazilian inflation-linked sovereign bond market. Its returns are primarily influenced by changes in real interest rates, inflation expectations, monetary policy decisions, fiscal conditions, and the duration profile of the securities included in the IMA-B.

Additional Information

BTG Pactual IMA-B ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $719.61 million.

Over the past 12 months, BTG Pactual IMA-B ETF recorded a return of 12.23%, with its price trading between $105.69 and $119.36 during the same period.

The ETF is traded under the ticker PACG11.