The Itaú Small Caps ETF (SMAC11) is a Brazilian exchange-traded fund designed to track the performance of the SMLL Index (Índice Small Cap B3). Managed by Itaú Asset Management, the ETF trades on the B3 and provides investors with broad exposure to Brazilian small-cap companies through a single exchange-traded investment.

Classified as an equity ETF, SMAC11 follows a passive management strategy. The fund invests primarily in the stocks that make up the SMLL Index, seeking to replicate the performance of small-cap companies listed on the Brazilian stock market.

The benchmark tracks companies with relatively smaller market capitalizations that meet the B3's liquidity and eligibility requirements. Constituents are weighted according to the index methodology and periodically rebalanced to maintain accurate representation of Brazil's small-cap segment.

Composition / Exposure Profile

SMAC11 provides exposure primarily to:

• Brazilian small-cap companies.

• Stocks listed on the B3.

• Companies across multiple sectors of the Brazilian economy.

• Businesses with higher domestic-market exposure.

• Growth-oriented companies.

The ETF offers diversified exposure to smaller publicly traded companies that often have greater growth potential than large-cap firms, while also exhibiting higher sensitivity to domestic economic conditions. Holdings typically span sectors such as industrials, consumer discretionary, financials, real estate, healthcare, technology, and utilities, depending on the composition of the underlying index.

Because its portfolio is concentrated in companies that generate most of their revenues in Brazil, SMAC11's performance is largely influenced by factors such as economic growth, interest-rate expectations, inflation, consumer demand, corporate earnings, and overall investor sentiment toward the Brazilian equity market.

Structure and Costs

SMAC11 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 within a total annual expense ratio of approximately 0.50%, in addition to operational expenses associated with maintaining the portfolio.

SMAC11 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 Itaú Small Caps ETF was launched in 2020 to provide investors with convenient access to Brazil's small-cap equity market through a low-cost, index-based investment vehicle.

Since its inception, SMAC11 has become part of the range of domestic equity ETFs available on the B3, reflecting growing investor interest in companies with long-term growth potential beyond Brazil's largest listed corporations. 

Over time, the fund's performance has mirrored the broader small-cap segment, which tends to be more sensitive to changes in Brazil's economic cycle, monetary policy, corporate earnings expectations, and overall market risk appetite.

Additional Information

Itaú Small Caps ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $114.91 million.

Over the past 12 months, Itaú Small Caps ETF recorded a return of -2.77%, with its price trading between $51.42 and $67.40 during the same period.

The ETF is traded under the ticker SMAC11.