Credit: iStock
GLMP11 rose 1.05%, while REVE11 fell 1.32% on Thursday, October 8. The 2.37 percentage point performance spread between the two ETFs aligned with moves among their underlying holdings: in Brazil, Equatorial, Copel, Cemig, and power transmission companies advanced; in the United States, Lattice Semiconductor, Hewlett Packard Enterprise, and Equinix closed lower.
The Brazilian macro backdrop was driven by renewed expectations for fiscal adjustment starting in 2027, fueled by election debates. Futures interest rates fell by over 20 basis points across the yield curve during the session. This curve compression supports the valuation of long-duration asset businesses with recurring revenues, such as power generation, transmission, and distribution, as lower discount rates increase the present value of future cash flows. The Ibovespa index closed up 0.94%.
In the United States, the environment was less favorable for technology stocks. The Nasdaq fell 1.25% and the S&P 500 lost 0.47%, though the Dow Jones managed a 0.10% gain. Long-term interest rates remained elevated, despite slight yield relief in US Treasuries. For REVE11, this combination is significant because its green revenue selection methodology includes equipment manufacturers, software providers, and digital infrastructure firms alongside traditional energy and environmental services companies.
GLMP11 (Galapagos): +1.05%
Equatorial (EQTL3) advanced 1.35% to R$ 49.66, and Copel (CPLE3) gained 1.09% to R$ 17.65. Both positions held a 15% weight following the October 1 index rebalance. Simultaneous appreciation across this combined 30% core provided strong portfolio support. Equatorial operates in power distribution, transmission, and generation, while Copel similarly spans generation, transmission, and distribution. This composition connects the ETF both to the value of long-term concessions and capital investments, as well as corporate capacity to fund expansion. Falling yield curves enhance future cash flow valuations and, if sustained, improve funding and refinancing costs.
Support extended to Cemig (CMIG4), which rose 1.68% to R$ 12.07, and Energisa (ENGI11), which gained 1.83% to R$ 66.25. Rebalance weights for these holdings stood at 11.14% and 10.43%, respectively. Combined with Equatorial and Copel, they represented 51.57% of the index.
Among power transmitters, ISA Energia (ISAE4) gained 2.29% to R$ 29.98, and Taesa (TAEE11) rose 1.99% to R$ 45.63. Carrying weights of 6.97% and 5.01%, they reinforced the upward trend. Their revenues are tied to transmission grid availability, making valuations closely linked to long-term contractual cash flows and applicable discount rates.
In power generation, Engie Brasil (EGIE3) advanced 1.60% to R$ 31.79, with a 7.16% weight at rebalance. However, a notable drag came from Axia Energia (AXIA3), which fell 0.82% to R$ 59.38 despite holding a 12.51% index weight. The decline in this major position capped gains generated by other utilities. GLMP11 closed at R$ 114.27, up 1.05% for the day.
Want to follow discussions on indices, strategies, and the ETF market? INDEX 2026, DEX’s annual event, takes place on November 12 in São Paulo. Secure your spot.
REVE11 (Itaú Asset): -1.32%
REVE11 tracks the Russell 1000 Green Revenues 50 Index, whose recent breakdown held a 32.66% allocation to technology. Hewlett Packard Enterprise (HPE) was the largest position at 15.10%, followed by Zoom at 8.54%, and Lattice Semiconductor at 5.45%. During the October 8 session, HPE dropped 1.51% to $71.00, Lattice fell 4.59% to $124.98, and Zoom slipped 0.11% to $94.67. HPE supplies servers, networking, and computing infrastructure; Lattice manufactures programmable semiconductors used in industrial, communications, and processing applications. Consequently, the ETF carries exposure to tech capex cycles and sector valuations alongside its environmental screening.
HPE’s pull-back occurred despite operational expansion news: the company announced new servers powered by AMD processors and a computing infrastructure project for Mizuho Securities. Nevertheless, shares retreated after accumulating gains of 3.10% and 2.28% in the previous two sessions.
Downward pressure also reached Equinix (EQIX), which lost 2.00% to $1,011.16, and Eaton (ETN), which declined 1.58% to $424.51. They represented 6.65% and 4.26% of the index at the end of September. Equinix operates data centers, a capital-intensive business sensitive to borrowing costs, while Eaton provides electrical equipment and power management systems exposed to electrification and grid expansion. Tesla (TSLA), weighted at 7.95%, fell 0.74% to $375.00, adding drag from the electric vehicle and energy storage segments.
On the other hand, Waste Management (WM) gained 0.56% to $210.10, contrasting with declines in tech and digital infrastructure. The waste collection, treatment, and disposal company held a 6.54% index weight at the end of September. Zoom also posted a minor loss relative to other analyzed holdings. Additionally, spot US dollar exchange rates rose 0.27% to R$ 5.024; for REVE11’s international exposure, US dollar appreciation supports BRL-denominated conversion. Despite these positive offsets, share prices closed at R$ 75.51, down 1.32% on the session.
This content is for informational purposes only and does not constitute an investment recommendation. Past performance is no guarantee of future results.
