Defensiveness and Dividends Lead Factor ETFs in 2026

The Brazilian stock market began the year supported by foreign capital inflows, a weakening dollar, and the repricing of domestic and international interest rates. The influx of resources primarily favored high-liquidity stocks, which hold significant positions in several ETFs on this list.

Subsequently, the market entered a more irregular phase. Inflation remained above the target center, and the Selic rate, even after four consecutive cuts, continued at a restrictive level. This environment kept the cost of capital high and increased selectivity among companies, sectors, and investment strategies.

Portfolio composition made a difference. Funds focused on quality, dividend-paying, and less volatile companies benefited from exposure to banks, insurers, utilities, and consolidated companies. Conversely, high-beta strategies faced greater pressure as they concentrate on stocks linked to consumption, credit, construction, and other segments sensitive to the economic cycle.

The result is a significant dispersion among ETFs. While BVBR11 is up 7.00% year-to-date, HIGH11 has fallen 16.88%. Between the two extremes, dividends, low volatility, fundamentals, momentum, and quality produced distinct returns based on their selection criteria and sector distribution.

Source: DEX PRO. As of: August 25, 2026

BVBR11: +7.00%

Managed by Investo, BVBR11 leads the list with a 7.00% appreciation. The ETF replicates the Índice Constância Fatores Defensividade, which selects Brazilian stocks by combining quality, value, and volatility criteria. The methodology seeks profitable, efficient, less volatile companies with a consistent dividend history.

Sector distribution helps explain the fund’s resilience. Financial services represent 33.15% of the portfolio, followed by materials, energy, and utilities. Vale, Petrobras, Itaú Unibanco, Bradesco, Itaúsa, Axia Energia, and Santander are among its main positions.

Early in the year, foreign capital inflows and the search for large-cap companies favored a significant portion of this portfolio. Positioned in banks allowed participation in the recovery of financial stocks, while utilities and businesses with more predictable revenues helped balance periods of greater market fluctuation.

The combination of factors also distinguishes BVBR11 from purely defensive funds. In addition to limiting exposure to highly volatile companies, the index incorporates quality and value, maintaining stakes in commodities and energy companies that contributed to the market’s rise at various points in the year.

DIVO11: +6.62%

DIVO11, managed by Itaú, has accumulated a 6.62% rise. The fund tracks the Dividends Index, IDIV, composed of companies that stand out in shareholder remuneration through dividends and interest on equity.

To be included in the index, the asset must be among the top 33% of eligible securities with the highest dividend yields over the last 36 months. Since IDIV is a total return index, received proceeds are incorporated into the portfolio’s result.

BB Seguridade, Petrobras, Itaúsa, Copasa, Cemig, Itaú Unibanco, Vale, Bradesco, and Banco do Brasil are among the relevant holdings. This composition concentrates the strategy on financial institutions, utilities, sanitation, energy, and basic materials.

Throughout the year, cash generation and proceeds distribution helped sustain interest in mature companies. The presence of electricity and sanitation companies brought greater predictability, while banks and insurers allowed the fund to participate in periods of appreciation in the financial sector.

Exposure to Petrobras and Vale also added a cyclical component. This portion made performance sensitive to fluctuations in oil, iron ore, and large exporting companies, but without removing the ETF’s predominant dividend bias.

LVOL11: +4.70%

Managed by Nu Asset, LVOL11 shows a 4.70% rise. The ETF replicates the Ibov Smart Low Volatility B3 and selects the stocks with the lowest volatility within the Ibovespa universe.

Utilities represent 32.2% of the portfolio, followed by the financial sector at 25.9%, and basic materials at 16.5%. BB Seguridade, Ambev, Klabin, Caixa Seguridade, Taesa, ISA Energia, SLC Agrícola, Gerdau, Itaúsa, and Itaú Unibanco appear among the largest positions.

In the early months, the strategy benefited from the market’s appreciation and the search for consolidated companies. When the environment became more volatile, diversification among utilities, insurers, telecommunications, banks, and non-cyclical consumption helped reduce dependency on sectors more sensitive to credit.

Performance fell below BVBR11 and DIVO11 because low volatility, in isolation, does not seek the highest dividend yields nor combine the same value and quality filters. Nevertheless, the concentration on public services and companies with relatively predictable revenues contributed to keeping the fund in positive territory.

AUVP11: +4.49%

AUVP11 accumulated an appreciation of 4.49%. Managed by BTG Pactual, the ETF tracks the Índice Teva Ações Fundamentos, which selects Brazilian companies based on profitability, operational efficiency, and debt control.

The portfolio shows relevant concentration in financial services and energy. Itaú Unibanco, Petrobras, Bradesco, B3, Itaúsa, WEG, and BTG Pactual are among its main positions. The financial sector represents 40.40% of the composition, while energy accounts for 27.40%.

Exposure to consolidated companies allowed the fund to participate in the positive movement of high-liquidity stocks. Banks were favored during periods of higher foreign capital inflows, while Petrobras’ presence added exposure to the energy sector’s cash generation.

This concentration also limited the diversification of return drivers. Oil fluctuations and changes in perception regarding interest rates, credit, and economic activity affected a relevant portion of the portfolio. Nevertheless, efficiency and indebtedness filters helped the ETF remain among the group’s positive results.

NSDV11: +4.12%

NSDV11, managed by Nu Asset, is up 4.12%. The fund replicates the Ibov Smart Dividendos, which selects Ibovespa companies with a consistent history of dividend payments over the last six years.

Utilities, financial services, and basic materials form the portfolio’s main blocks. BB Seguridade, CSN Mineração, Copasa, Taesa, Metalúrgica Gerdau, Vale, Petrobras, Itaúsa, Banco do Brasil, Bradesco, and Cemig are among the largest exposures.

The concentration on electricity and sanitation companies helped mitigate periods of greater caution. At the same time, the presence of steel, mining, and oil kept the fund exposed to commodity fluctuations and the behavior of major Brazilian exporters.

The return below DIVO11 is related to differences in methodologies. NSDV11 selects Ibovespa companies based on payment history and consistency, while IDIV uses its own criteria for eligibility, dividend yield, and weighting.

BMMT11: +3.76%

Managed by Bradesco Asset, BMMT11 has accumulated a 3.76% rise. The ETF replicates the Morningstar Brazil Target Momentum, which selects 30 Brazilian stocks with the best recent performance and positive profitability metrics.

The strategy assigns equal weights to stocks. This reduces concentration on the exchange’s largest companies and expands the participation of medium and smaller-sized companies. The portfolio is reconstituted semi-annually, while weights are adjusted quarterly.

Early in the year, the market’s positive environment created favorable conditions for the continuity of some trends. Subsequently, the alternating inflow and outflow of resources, persistent high interest rates, and corrections in different sectors reduced the consistency of the movement.

Since the momentum factor uses recent performance to select its components, rapid shifts in leadership can reduce its efficiency between rebalancings. The result remained positive, but below defensive and dividend strategies, which had support from more stable sector exposures.

QLBR11: -0.46%

QLBR11 shows a 0.46% drop. The fund is co-managed by Investo and Rio Bravo and replicates the MarketVector Brazil Multifactor Quality Index. The methodology combines liquidity, operational efficiency, profitability, financial soundness, and valuation.

Cyclical consumption represents 32.05% of the portfolio, and financial services account for 27.57%. Utilities, real estate, industry, and materials complete the main allocations. XP, BB Seguridade, Itaúsa, Suzano, Porto Seguro, Inter, ISA Energia, Cyrela, Cury, and Taesa are among the largest positions.

The significant exposure to cyclical consumption and real estate made the portfolio more sensitive to domestic interest rates and expectations for credit and economic activity. Despite the rise of some construction companies and financial institutions, this composition did not fully replicate the recovery of the major Ibovespa companies.

The appreciation of the real can also affect exporting companies present in the portfolio, such as Suzano, by altering the conversion of revenues obtained in foreign currency. The result, near stability, shows that quality and valuation filters were counterbalanced by the fund’s sector distribution.

Source: DEX PRO. As of: August 25, 2026

HIGH11: -16,88%

HIGH11 records the worst performance on the list, with a 16.88% drop. Managed by Nu Asset, the fund replicates the Ibov Smart High Beta B3, composed of the highest beta stocks from the Ibovespa. The strategy tends to amplify both market rises and falls.

Cyclical consumption represents 45.3% of the portfolio. Basic materials account for 15.9%, while oil, gas, and biofuels have a 9.9% share. Main positions include Ultrapar, CSN Mineração, Assaí, Vibra, Cosan, Lojas Renner, Cogna, Smart Fit, Vamos, Cyrela, CSN, Yduqs, MRV, and Magazine Luiza.

Despite the market’s rise at the beginning of the year, the fund began facing successive corrections. The Selic rate remained elevated even with the start of the cutting cycle, keeping financing costs and rates used in company valuations high. This scenario was particularly challenging for retail, education, construction, car rental, and companies that are indebted or dependent on credit.

The presence of basic materials and fuel distribution added other vectors of volatility. Fluctuations in commodities, exchange rates, and operating margins affected companies like CSN, CSN Mineração, Vibra, Ultrapar, and Cosan.

The composition also explains the gap relative to defensive funds. While BVBR11, DIVO11, and LVOL11 concentrate a larger share in mature companies, utilities, banks, and insurers, HIGH11 favors stocks that respond with more intensity to changes in market conditions. In a year of selective recovery, this characteristic led to broader losses than those observed in the benchmark index.