Credit: iStock
Performance across Brazilian equity ETFs on Tuesday, October 6, revealed a divided stock market between continued gains in domestic segments and profit-taking in mega-cap companies. BDEF11 rose 0.87%, BDOM11 gained 0.62%, and BCIC11 advanced 0.30%. On the other end, BOVA11 fell 0.91% and CMDB11 lost 1.40%.
The movement followed Monday’s record high for the Ibovespa and sharp asset repricing in the session following the first round of elections. On Tuesday, the benchmark index slipped 0.52%, but intermediate and long-term interest rates continued to decline. The January 2029 DI contract moved from 12.591% at the previous settlement to 12.445%, while the January 2031 maturity fell from 12.653% to 12.560%.
This yield curve compression favored capital-cost-sensitive companies, such as homebuilders, shopping centers, and service providers. At the same time, the commercial US dollar fell 0.51% to near R$ 4.97, creating foreign exchange headwinds for exporting businesses. Banco do Brasil, Petrobras, and PRIO experienced notable declines, while Itaú, Bradesco, and Santander advanced. Performance divergences among ETFs reflected how these movements combined with individual portfolio weightings.
BDEF11 (Bradesco Asset): +0.87%
BDEF11 gathers a basket focused on defensive companies, but its composition helps explain why gains went beyond an isolated utility rally. In the recent portfolio, Fleury represented 4.08%, Rede D’Or 3.99%, and Cogna 3.74%. On Tuesday, these stocks rose 4.41%, 2.13%, and 4.83%, respectively.
Energisa also provided a favorable contribution, with its ENGI11 units advancing 2.18%, while Sabesp gained 1.68%. The companies held portfolio weights of 4.14% and 4.03%. Falling interest rates enhance valuation for long-duration infrastructure businesses generating revenues over many years. Conversely, Assaí fell 2.70% and Axia dropped 3.10%, capping gains.
The ETF accumulated an 8.25% gain on the week and 19.13% year-to-date.
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BDOM11 (Investo): +0.62%
BDOM11 selects companies with a substantial portion of revenue generated in the Brazilian market. In the recent portfolio breakdown, financial services represented 40.09% and utilities 16.10%. Itaú Unibanco held an 8.19% weight, Bradesco 5.69%, and BTG Pactual 5.24%, alongside Banco do Brasil and Nubank.
Gains in Itaú preferred (+1.96%) and Bradesco preferred (+4.40%) supported the private banking allocation. Equatorial and Sabesp also advanced, while Banco do Brasil and BTG Pactual pulled back. Lower intermediate interest rates provided additional support to domestic companies through both future earnings valuations and lower financing costs. The 0.62% gain occurred despite internal portfolio headwinds—including Petrobras—and brought weekly gains to 11.05%.
BCIC11 (Bradesco Asset): +0.30%
BCIC11 gathers companies in cyclical sectors with equalized or distributed weights across constituents. In the recent portfolio, Cyrela held a 1.98% stake, Multiplan 1.83%, and Iguatemi 1.78%. Their shares advanced 3.14%, 2.68%, and 2.99%, respectively, highlighting strength in homebuilding and shopping centers as interest rates continued to fall.
The portfolio also participated in private bank gains. Conversely, exposure to BTG Pactual, Banco do Brasil, Petrobras, and Rumo exerted downward drag. Distributed weightings enabled gains in consumer, real estate, and private banking holdings to offset part of that pressure. BCIC11 closed up 0.30%, accumulating 8.49% on the week and 12.60% over the past month.
UTLL11 (Investo): +0.07%
UTLL11 demonstrated how a single stock’s movement can constrain a sector portfolio. In the recent portfolio, Sabesp held a 20.36% weight and Axia 19.53%. The former advanced 1.68%, while the latter fell 3.10%. Equatorial, holding an 11.06% stake, rose 1.13%; Copel, at 10.37%, gained 0.46%.
Additional support came from Energisa and Cemig, but Axia’s decline carried high importance due to fund concentration. Yield curve compression provides structural valuation support for utilities, whose capital investments and revenues span long horizons.
On the week, the ETF accumulated an 8.39% gain.
BXPO11 (Investo): -0.15%
BXPO11 offers exposure to exporting companies. In the recent portfolio breakdown, PRIO held an 8.41% weight, WEG 8.31%, Gerdau 8.02%, Suzano 7.84%, and Vale 7.61%. These stocks lost 3.27%, 0.98%, 1.01%, 0.57%, and 1.44%, respectively, creating significant combined downward pressure.
Real appreciation reduced the BRL value of future foreign-currency revenues—a key channel for many exporters. The downward move was partially offset by Minerva, which rose 7.40% and held a 4.33% weight, alongside varied performance across other exporters.
BEST11 (Investo): -0.23%
BEST11 concentrates its strategy across banking, electric utilities, insurance, sanitation, and telecommunications. In the recent portfolio, banks and utilities combined for 73.78%. BTG Pactual held an 8.55% weight, Banco do Brasil 8.18%, and Axia 7.90%. Drops of 2.81%, 6.42%, and 3.10% in these holdings created significant drag on the portfolio.
Gains in Bradesco, Itaú, Equatorial, and Sabesp provided upside balance. The combination limited losses to 0.23%, though it was insufficient to drive positive performance. The ETF retained an 8.99% weekly gain and a 21.06% gain year-to-date.
BNKS11 (Investo): -0.63%
BNKS11 is a concentrated banking exposure. In the recent portfolio, BTG Pactual and Banco do Brasil represented 21.24% and 20.65%, combining for 41.89%. Consequently, drops of 6.42% in Banco do Brasil and 2.81% in BTG had a heavy impact on overall performance.
On the upside, Itaú preferred, Bradesco preferred, and Santander gained 1.96%, 4.40%, and 3.23%, respectively. Their weights stood at 18.52%, 15.66%, and 10.38%. Gains in private banks offset part of the loss, but heavy weighting in the two declining names explains why the ETF closed lower despite widespread bank gains. Through Tuesday, the ETF accumulated a 12.00% gain on the week and 18.32% over the past month.
FIND11 (Itaú Asset): -0.68%
FIND11 tracks B3’s financial index and includes businesses beyond banks. In the September reference portfolio, B3 held an 18.03% weight, BTG Pactual 14.74%, and Banco do Brasil 13.33%. B3 dropped 2.66% on Tuesday, joining losses in both banks and broadening downward pressure on the ETF. BB Seguridade also fell 2.22%.
Itaú preferred and Bradesco preferred, with reference weights of 18.09% and 15.55%, advanced to offer offset. The primary difference compared to BNKS11 lies in significant allocations to exchange operator B3 and insurers, whose performance shifts total financial basket returns. The 0.68% daily drop followed a strong recent rally: FIND11 accumulated a 13.23% gain on the week and 35.75% year-to-date.
MATB11 (Itaú Asset): -0.78%
MATB11 tracks the basic materials index, gathering steel, mining, pulp, and industrial businesses. In the September reference portfolio, Gerdau represented 20.40%, Suzano 19.50%, and Vale 19.18%. Together, these three components accounted for roughly 59% of the index and fell during the session, creating broad pressure across the portfolio core.
Declines also reached CSN (-2.02%), CSN Mineração (-1.98%), and Usiminas (-1.88%). Klabin gained 0.22%, but failed to reverse overall sector momentum. A stronger Real pressures export revenues converted into local currency, while individual company and commodity market dynamics add further sector dispersion. The ETF slipped 6.09% over the past month, while retaining a 2.98% gain year-to-date.
BOVA11 (BlackRock): -0.91%
BOVA11 provides broad Ibovespa exposure and carried the weight of declining mega-caps. In the September reference portfolio, Vale represented 11.16%, Petrobras preferred 8.00%, and Petrobras common 4.89%. Petrobras’ two share classes combined for 12.89% and lost 2.78% and 1.80%, respectively, while Vale dropped 1.44%. Index concentration gave these names dominant influence over portfolio direction.
Banco do Brasil, BTG Pactual, and Axia added further drag. Itaú and Bradesco advanced, but gains in these banks could not overcome losses across other major holdings. Brent crude closed up a slight 0.26% at $100.58 per barrel, indicating that the drop in Brazilian oil companies was not driven solely by daily commodity movements. Profit-taking following the domestic rally, Real appreciation, and stock-specific moves shaped session performance. Despite the 0.91% pull-back, BOVA11 maintained a 6.58% weekly gain and a 28.16% return year-to-date.
CMDB11 (BTG Asset): -1.40%
CMDB11 concentrates exposure in Brazilian commodity-linked equities. In the reference portfolio rebalanced on October 1, Vale held a 20.00% weight, PRIO 15.45%, Petrobras preferred 10.70%, and Petrobras common 9.30%. Combined, these four components represented 55.45% of the index, and all closed lower.
Downward pressure also reached Gerdau (10.40%) and Suzano (8.77%). Joint exposure to oil, mining, and pulp explains fund sensitivity to weakness across these shares, despite isolated gains elsewhere. The ETF closed down 1.40% on the day, but retained a 21.06% gain year-to-date.
This content is for informational and educational purposes only and does not constitute an investment recommendation.
