Higher yields pressure technology ETFs at the start of September

Brazil-listed technology ETFs ended the first trading session of September in negative territory. The seven products analyzed declined between 1.51% and 2.99%, reflecting losses in growth stocks in the United States and China, as well as the Brazilian real’s appreciation against the US dollar.

In the United States, the Nasdaq Composite fell 1.03%, while technology and consumer discretionary stocks led the losses. The 10-year Treasury yield rose to approximately 4.78% to 4.79% amid a global sovereign bond selloff.

Oil prices added pressure to the market environment. WTI crude rose more than 5% and moved above $90 per barrel, while Brent gained 4.6% to $94.65. Escalating tensions in the Middle East raised concerns about supply and the inflationary impact of higher energy costs, reinforcing the prospect of interest rates remaining elevated for longer.

This environment had a stronger impact on technology and growth companies, whose valuations incorporate a significant share of profits expected in future years. The Nasdaq-100 Technology Sector Index fell 2.73% during the session.

In Brazil, the US dollar declined 0.47% to approximately BRL 5.156. Because the ETFs in the analysis hold international exposure without fully hedging their currency risk, the stronger Brazilian real reduced their returns on the B3 and amplified the negative effect of overseas equity losses.

NASD11 posted the smallest decline in the group, falling 1.51%. The ETF tracks the Nasdaq-100, an index of large nonfinancial companies listed on the Nasdaq, while also incorporating movements in the US dollar against the Brazilian real.

The result reflected the pressure that higher US interest rates placed on growth stocks. The Nasdaq Composite lost 1.03%, while the technology segment underwent a sharper correction as Treasury yields rose and higher oil prices increased inflation concerns.

The fund declined less than ETFs exclusively concentrated in technology because the Nasdaq-100 also includes companies from consumer discretionary, communication services and other industries. This provides broader exposure than the sector indexes tracked by UTEC11 and USTK11.

The dollar’s decline against the real created an additional drag on the return measured in Brazilian currency. This currency effect helps explain why NASD11 fell more than the Nasdaq Composite in the US market.

UTEC11 (XP Asset): -1.72%

UTEC11 declined 1.72%. The fund tracks a broad portfolio of US technology companies across different market capitalization ranges.

Its sector concentration made the ETF more sensitive to the increase in long-term interest rates. Technology companies were among the most pressured stocks during the session, while the Nasdaq-100 Technology Sector Index fell 2.73%.

The selloff was not limited to the industry’s largest companies. Losses reached software, digital infrastructure and semiconductor stocks as investors reassessed the outlook for interest rates and the cost of capital embedded in growth-stock valuations.

USTK11 (Investo): -1.84%

USTK11 fell 1.84%. The ETF provides broad exposure to the US technology sector through a portfolio that includes software, hardware, semiconductor and technology-services companies.

The main factor behind the session was the increase in US government bond yields. The 10-year Treasury yield reached approximately 4.8%, raising the discount rate investors apply to companies’ future cash flows.

Pressure across the sector was widespread. Microsoft declined 1.24%, Nvidia lost 1.51% and AMD fell 2.36%. Technology equipment and infrastructure companies also posted losses.

Because USTK11 carries currency exposure, the Brazilian real’s appreciation also weighed on the ETF’s performance on the B3. The US dollar ended the day down 0.47% against the Brazilian currency.

TECK11 (Itaú): -2.28%

TECK11 declined 2.28%. The ETF tracks the NYSE FANG+ Index, which consists of ten major technology and consumer companies with growth-oriented profiles. The constituents receive equal weights during index rebalancing, and the fund also incorporates changes in the US dollar against the Brazilian real.

The portfolio’s concentrated structure increased its sensitivity to the correction in large growth companies. Nvidia fell 1.51%, Microsoft lost 1.24%, Tesla declined 3.22% and Amazon dropped 1.87% in the US market.

The NYSE FANG+ Index uses equal weighting, preventing the largest companies by market capitalization from dominating performance. As a result, significant declines across several constituents can materially affect the index even when other portfolio holdings remain more stable.

The dollar’s decline added another negative component. The combination of concentrated growth-stock exposure, losses among portfolio companies and the stronger Brazilian real caused TECK11 to underperform NASD11, UTEC11 and USTK11.

TECX11 (Bradesco Asset): -2.49%

TECX11 fell 2.49%. The ETF provides exposure to the ChiNext market, a segment of China’s equity market focused on growth, technology and innovation companies.

Chinese stocks ended the session lower, with the Shenzhen Component down 1.02% and the ChiNext Index losing 1.32%. The technology-focused STAR market declined 2.35%.

Weakness was particularly pronounced in technology-related industries. Electronic chemicals and memory-chip stocks were among the main decliners, while China’s semiconductor index fell approximately 3%.

The session was also characterized by a rotation toward defensive sectors. Banks and consumer staples advanced, while technology, semiconductor and growth companies came under pressure. This rotation directly affected TECX11’s thematic exposure.

CHIP11 (Investo): -2.51%

CHIP11 declined 2.51%, posting the second-largest loss in the group. The ETF provides exposure to international companies across the semiconductor supply chain, one of the industries most affected by rising long-term interest rates.

The SOXX semiconductor index fell by approximately 2% during the session. Nvidia lost 1.51%, AMD declined 2.36%, Micron fell 2.64% and Arm dropped 2.93%. Semiconductor equipment companies also posted losses, with Lam Research down 3.74% and Applied Materials falling 3.61%.

The correction was associated with the global sovereign bond selloff and the increase in the 10-year Treasury yield to approximately 4.8%. This move particularly affected companies whose valuations depend on continued artificial intelligence investment and earnings growth over the coming years.

QQQQ11 (Buena Vista): -2.99%

QQQQ11 posted the largest decline in the analysis, falling 2.99%. The ETF tracks a strategy with heightened sensitivity to the Nasdaq-100 and therefore tends to amplify movements among the growth stocks in its reference universe.

The session brought together several unfavorable factors for this exposure. The Nasdaq declined, long-term US interest rates moved higher and a number of more volatile technology stocks posted losses that exceeded those of the broader indexes.

Palantir declined 3.47%, Oracle fell 5.23%, Palo Alto Networks lost 5.24% and Dell dropped 6.87%. These movements show that pressure was more intense among technology companies with greater sensitivity to growth expectations and valuation discount rates.

Interest rates, oil and currency movements explain the broad decline

The technology ETF correction occurred as global government bond yields rose and oil prices posted a sharp increase. Together, these factors reinforced inflation concerns and the prospect that interest rates could remain elevated for longer, placing particular pressure on growth stocks.

In the United States, losses were stronger among semiconductor companies and more volatile technology stocks. In China, both the ChiNext market and semiconductor shares declined, adding pressure to TECX11.

The Brazilian real’s appreciation created an additional headwind for the products listed on the B3. Because the funds hold international assets, the dollar’s decline reduced the value of those positions when translated into Brazilian reais.

The result was a negative session for every ETF in the analysis, with larger losses among products concentrated in high-sensitivity growth stocks, semiconductors and Chinese technology companies.