The BTG Pactual High Income Dividend ETF (PHIP11) is a Brazilian exchange-traded fund designed to track the performance of the Teva High Income Dividend Equity Index, a benchmark composed of Brazilian companies selected for their dividend-paying characteristics. Managed by BTG Pactual Asset Management, the ETF trades on the B3 and provides investors with diversified exposure to income-oriented Brazilian equities through a single exchange-traded investment.

Classified as an equity ETF, PHIP11 follows a passive management strategy. The fund seeks to replicate the performance of its benchmark by investing primarily in Brazilian stocks selected according to dividend distribution history, liquidity requirements, and fundamental criteria.

The underlying index is designed to identify companies with consistent dividend-paying profiles while maintaining sector diversification. Constituents are periodically reviewed and rebalanced according to the index methodology to preserve exposure to businesses that exhibit attractive income characteristics.

Composition / Exposure Profile

PHIP11 provides exposure primarily to:

• Brazilian dividend-paying companies.

• Income-oriented equities.

• Multiple sectors of the Brazilian economy.

• Companies with established dividend distribution histories.

• The domestic equity market.

The ETF seeks to capture the performance of companies that have historically generated consistent cash distributions to shareholders while maintaining diversified exposure across industries. Depending on the composition of the underlying index, the portfolio may include businesses from sectors such as financials, utilities, energy, telecommunications, consumer staples, and other mature industries traditionally associated with dividend payments.

Because of its investment strategy, the fund's performance is influenced by corporate earnings, dividend policies, interest-rate expectations, inflation, and overall conditions in the Brazilian equity market.

Structure and Costs

PHIP11 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, in addition to the operational expenses associated with maintaining and replicating the underlying index.

PHIP11 does not charge a performance fee and does not make recurring income distributions. Dividends and other proceeds received from portfolio holdings are automatically reinvested into the fund. The ETF has an indefinite term.

History and Evolution of the ETF

The BTG Pactual High Income Dividend ETF was launched to provide investors with convenient access to a diversified portfolio of Brazilian dividend-paying companies through the Brazilian stock exchange.

Since its inception, PHIP11 has expanded the range of income-oriented equity ETFs available on the B3, reflecting growing investor demand for strategies focused on long-term cash generation and dividend investing. 

Over time, the fund's performance has closely followed the Brazilian dividend-paying equity segment, influenced by macroeconomic conditions, interest-rate cycles, corporate profitability, dividend policies, and the performance of the sectors represented in the portfolio.

Additional Information

BTG Pactual High Income Dividend ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $573.22 million.

Over the past 12 months, BTG Pactual High Income Dividend ETF recorded a return of 11.29%, with its price trading between $107.29 and $121.45 during the same period.

The ETF is traded under the ticker PHIP11.