The Investo Brazil Small Cap Value ETF (SCVB11) is a Brazilian exchange-traded fund designed to track the performance of the MarketVector™ Brazil Small-Cap Value Index, a benchmark that measures the performance of Brazilian small-cap companies exhibiting value characteristics. Managed by Investo Gestão de Recursos Ltda., the ETF trades on the B3 and provides investors with diversified exposure to the value segment of Brazil's small-cap equity market.

Classified as an equity ETF, SCVB11 follows a passive management strategy. The fund seeks to replicate the performance of its benchmark by investing in Brazilian small-cap companies selected according to value-oriented investment factors.

The underlying index screens companies based on liquidity requirements and valuation metrics such as the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and price-to-sales (P/S) ratio. Constituents are weighted according to the index methodology and periodically rebalanced to maintain exposure to companies that best represent the value factor within Brazil's small-cap universe.

Composition / Exposure Profile

SCVB11 provides exposure primarily to:

• Brazilian small-cap companies.

• Value-oriented equities.

• Companies selected using fundamental valuation metrics.

• Multiple sectors of the Brazilian economy.

• The domestic equity market.

The ETF is designed to capture the performance of smaller publicly traded companies that trade at relatively attractive valuations compared with their fundamentals. By emphasizing the value factor, the portfolio seeks exposure to businesses that may be undervalued by the market while maintaining broad diversification across industries.

Because of its focus on Brazilian small-cap value stocks, the fund's performance is influenced by domestic economic activity, interest-rate expectations, corporate earnings, investor sentiment, and valuation cycles within Brazil's equity market.

Structure and Costs

SCVB11 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 approximately 0.30% per year, in addition to operational expenses associated with maintaining and replicating the underlying index.

SCVB11 does not charge a performance fee and does not make recurring income distributions. Dividends and other proceeds generated by portfolio holdings are automatically reinvested into the fund. The ETF has an indefinite term.

History and Evolution of the ETF

The Investo Brazil Small Cap Value ETF was launched in 2022 to provide investors with convenient access to a diversified portfolio of Brazilian small-cap companies selected using a value-oriented investment approach.

Since its inception, SCVB11 has expanded the range of factor-based equity ETFs available on the B3, reflecting growing investor interest in systematic investment strategies focused on valuation. 

Over time, the fund's performance has closely tracked the Brazilian small-cap segment, with returns primarily influenced by macroeconomic conditions, interest-rate cycles, corporate earnings, and shifts in investor appetite for value stocks within the domestic equity market.

Additional Information

Investo Brazil Small Cap Value ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $12.88 million.

Over the past 12 months, Investo Brazil Small Cap Value ETF recorded a return of -13.01%, with its price trading between $76.53 and $106.69 during the same period.

The ETF is traded under the ticker SCVB11.