The BTG Pactual Small Caps ETF (SMAB11) is a Brazilian exchange-traded fund designed to provide exposure to small-cap companies in the Brazilian equity market through a strategy focused on stocks with lower market capitalizations. The ETF is managed by BTG Pactual Asset Management and trades under the ticker SMAB11 on the B3.

Classified as an equity ETF, the fund follows a passive management strategy. Its objective is to track a portfolio composed of small-cap companies, seeking to reflect the performance of this segment of the Brazilian stock market.

Composition / Exposure profile

SMAB11 provides exposure primarily associated with:

• Brazilian small-cap companies.

• Growth-oriented equity strategies.

• Domestic equity-market exposure.

• Mid-sized and emerging businesses.

• Industrial companies.

• Consumer-related sectors.

• Cyclical economic segments.

• Higher-volatility equity investments.

The portfolio includes companies such as Azul (AZUL4), Embraer (EMBR3), and Gerdau (GGBR4), among other constituents that meet the fund's eligibility criteria.

Small-cap companies often exhibit different performance dynamics compared to large-cap stocks, with returns influenced by growth expectations, liquidity conditions, and developments in the Brazilian economy.

Structure and costs

SMAB11 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 0.40% per year, in addition to operational expenses associated with portfolio trading and maintenance.

SMAB11 does not apply a performance fee and does not provide recurring income distributions, as dividends and other proceeds received from underlying holdings are reinvested into the portfolio.

History and evolution of the ETF

The BTG Pactual Small Caps ETF was launched in 2021 with the objective of expanding investor access to Brazil’s small-cap segment through an exchange-traded investment vehicle. Since inception, the fund has become part of the growing equity ETF segment in Brazil, reflecting investor interest in companies with higher growth potential and differentiated exposure within the domestic stock market.

In recent years, SMAB11 has reflected fluctuations in the small-cap segment, which typically exhibits higher volatility than broad-market benchmarks. Its performance has been influenced by macroeconomic conditions, interest-rate trends, domestic economic activity, and the operating results of the companies included in the portfolio.

Additional Information

BTG Pactual Small Caps ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $9.65 million.

Over the past 12 months, BTG Pactual Small Caps ETF recorded a return of 3.85%, with its price trading between $7.50 and $9.41 during the same period.

The ETF is traded under the ticker SMAB11.