Credit: Magnific
DINF11 debuted on the B3 on September 2 with a structure that is new to Brazil’s infrastructure ETF market: equities and fixed income combined in a single passively managed vehicle. Managed by BTG Asset, the fund tracks the Teva Hybrid Infrastructure Index.
The strategy allocates 80% of the portfolio to infrastructure-related equities and 20% to infrastructure bonds or inflation-linked government securities. Its exposure spans electric power, transmission, sanitation, concessions, mobility and urban infrastructure.
The ETF entered the market with an initial share price starting at approximately BRL 10 and an annual management fee of 0.20%. Dividends, interest and other portfolio income are reinvested, incorporating the proceeds into the fund’s net asset value.
A hybrid infrastructure strategy
DINF11 combines two complementary sources of return. The equity allocation provides exposure to company appreciation and dividends. The fixed-income component adds real interest rates, private-credit exposure and inflation-linked returns.
Within the equity portfolio, the index favors larger companies with a history of paying dividends. The strategy concentrates on established businesses in essential industries, with long-duration projects and relatively predictable revenue.
The fixed-income portion holds inflation-linked infrastructure bonds selected according to quality and liquidity criteria. The portfolio may also use inflation-linked Brazilian government bonds, providing greater flexibility to maintain its inflation exposure within the strategy’s parameters.
The combination spreads risk across asset classes with different dynamics. Equities respond to corporate results, economic activity, regulation and the yield curve. Bonds incorporate credit risk, market liquidity and mark-to-market price movements.
With 80% of its assets allocated to equities, DINF11 remains predominantly an equity strategy. Fixed income provides an additional source of carry and diversification without turning the ETF into a conservative product.
Energy dominates the portfolio, with exposure across infrastructure segments
The initial equity portfolio included 16 companies. Seven of the ten largest positions were directly associated with electric power generation, distribution or transmission. Copasa added sanitation exposure, while Allos and Motiva represented urban infrastructure, mobility and concessions.
The ten largest equity positions were:
Copel, Cemig and Axia Energia occupied the three largest positions, each close to 8%. Taesa, CPFL Energia, ISA Energia and Energisa expanded the electric-power exposure across generation, distribution and transmission.
Copasa represented sanitation with a 7.10% weight. Allos added urban assets, while Motiva provided exposure to toll roads, mobility and transportation infrastructure.
The methodology limits each equity to 10% of the portfolio. Within fixed income, a single issuer may account for no more than 3.33%. These limits reduce company-specific concentration while maintaining a clear focus on Brazilian infrastructure.
Credit diversification is central to the strategy
The portfolio contains 268 assets, with most of the diversification coming from fixed income. At launch, more than 230 bonds were distributed across different issuers, projects and maturities.
The portfolio’s scale reduces the potential impact of an individual bond. Building a comparable portfolio directly would require substantial capital, access to multiple offerings and continuous monitoring of issuer risk.
Diversification does not eliminate private-credit risk. Each security remains exposed to the issuer’s payment capacity, secondary-market liquidity and changes in real interest rates. The ETF’s distinguishing feature is the distribution of these exposures under systematic index rules.
The Teva Hybrid Infrastructure Index had a 12-month Sharpe ratio of 0.69. This metric relates excess return to volatility and provides a historical measure of risk-adjusted efficiency.
Why combine equities and bonds?
Infrastructure includes capital-intensive businesses, long-term contracts and revenue that is frequently linked to inflation. These characteristics are present both in infrastructure-company equities and in the securities issued to finance their projects.
The equity allocation provides exposure to operating results, dividends and company appreciation. Returns depend on project execution, corporate efficiency, regulatory decisions and economic conditions.
The fixed-income allocation adds returns linked to inflation and issuer credit spreads. It reduces exclusive dependence on equities but remains sensitive to real interest rates, liquidity and credit quality.
The structure seeks to balance the appreciation potential of infrastructure companies with the carry generated by bonds. Because portfolio income is reinvested, dividends and interest contribute to the ETF’s net asset value.
BNDES may invest up to BRL 200 million
DINF11 was selected through a BNDES public program designed to support infrastructure-focused ETFs. The program provides for investments of up to BRL 1 billion across as many as five funds, with a limit of BRL 200 million per product.
Resources allocated to DINF11 will be invested over time. The program adds a major institutional investor to the launch and connects the development of Brazil’s ETF market with infrastructure financing.
BNDES participation does not change the product’s market-based nature. The share price will continue to reflect the portfolio’s value, changes in the equity and bond holdings and trading dynamics on the B3.
Backtested history shows an advantage over longer periods
The Teva Hybrid Infrastructure Index history begins on July 1, 2016, and was constructed through backtesting. Results prior to the ETF’s launch represent the retroactive application of the index rules, not returns actually achieved by DINF11.
In 2026 through September, the index returned 7.9%, compared with 14.9% for the Ibovespa. Over the latest 12 months, it returned 26.7%, versus 32.0% for the Brazilian equity benchmark.
Relative performance was stronger over longer periods. The index gained 43.4% over 24 months, compared with 37.3% for the Ibovespa. Over 36 months, the respective returns were 66.4% and 57.1%.
Since the beginning of the backtested history, the index accumulated 327.6%, compared with 254.6% for the Ibovespa. The difference reached 73 percentage points.
Annual performance also shows distinct cycles. In 2024, the index declined 5.59%, compared with a 10.36% loss for the Ibovespa. In 2025, it gained 46.62%, outperforming the broader market’s 33.95% return. In 2026 through September, it returned 7.94%, while the Ibovespa gained 14.94%.
The strategy outperformed the Ibovespa in 2024, 2025, over 24 and 36 months and since the beginning of the backtest. The broader market performed better in 2026 and over the latest 12 months.
Volatility remained below the Ibovespa
The Teva Hybrid Infrastructure Index recorded lower volatility than the Ibovespa across every reported time horizon.
In 2026 through September, volatility was 17.95%, compared with 18.94% for the Ibovespa. Over the latest 12 months, the figures were 16.50% and 17.44%, respectively.
Over 24 months, the hybrid index recorded volatility of 15.11%, compared with 16.52% for the Ibovespa. Over 36 months, the figures were 14.20% and 15.40%.
Since the beginning of the historical series, the index’s volatility was 17.86%, while the Ibovespa reached 22.62%. The 4.76-percentage-point difference was the largest among the reported periods.
Lower volatility is consistent with combining an infrastructure-equity portfolio with a 20% fixed-income allocation. Companies with regulated revenue, long-term contracts and resilient demand can also behave differently from the broader equity market.
This does not eliminate the possibility of losses. The ETF remains predominantly invested in equities and may fluctuate when interest rates rise, regulation changes, credit conditions deteriorate or the economic outlook weakens.
Costs, liquidity and taxation
DINF11 charges an annual management fee of 0.20%. Average daily trading volume was BRL 0.02 million, equivalent to approximately BRL 20,000 during the reference period.
For individual investors, the sale of ETF shares is subject to a 15% income-tax rate, withheld at source. The product does not have Brazil’s semiannual fund-tax mechanism known as “come-cotas” and is not subject to IOF.
Infrastructure bonds may be exempt from income tax when purchased directly by individual investors. That exemption does not automatically transfer to DINF11, which has its own tax treatment as a hybrid ETF.
Trading volume also requires attention. Lower daily liquidity can widen the spread between bid and ask prices and make order execution more sensitive.
BTG Asset expands its ETF platform
DINF11 is part of BTG Asset’s expansion in Brazil’s ETF market. The manager increased its ETF assets under management from approximately BRL 1 billion in December 2024 to BRL 20 billion in June 2026.
The ETF launched less than one month after AMAB11, a product focused on assets associated with sustainable development in Brazil’s Legal Amazon region. DINF11 adds a hybrid strategy focused on national infrastructure.
The new product also expands the range of structures available in the local ETF market. Instead of exclusively replicating an equity or fixed-income portfolio, DINF11 uses a multi-asset index to combine both asset classes within a single strategy.
DINF11 turns infrastructure into a multi-asset exposure
DINF11’s main distinguishing feature is the combination of equities and corporate debt. The ETF provides access to infrastructure companies and securities through a single share, with allocation, diversification and rebalancing rules defined by the index.
The equity allocation seeks to capture appreciation and dividends from companies in energy, sanitation, transmission, mobility and urban infrastructure. Fixed income adds inflation-linked returns and the credit spreads of infrastructure bonds.
The backtested history shows stronger returns than the Ibovespa over 24 and 36 months and since inception, with lower volatility across every reported period. Performance trailed the broader market in 2026 and over the latest 12 months.
With a 0.20% annual management fee, 268 assets and the possibility of receiving up to BRL 200 million from BNDES, DINF11 arrives on the B3 as a new way to organize exposure to Brazilian infrastructure.
