Credit: Magnific
Brazil factor ETFs advanced in the first trading session of September as most of the local equity market posted gains. The eight products analyzed rose between 1.09% and 1.80%, while the Ibovespa gained 1.30% and closed at 179,722 points.
The market advance was broad, with 63 of the 78 Ibovespa constituents ending the session higher. Petrobras, banks, utilities and healthcare companies were among the main drivers.
Oil provided the strongest catalyst. Brent crude rose 4.60% to $94.65 per barrel, while WTI gained 5.20% to $90.22. Prices moved higher after a new escalation in Middle East tensions increased risks to transportation through the Strait of Hormuz.
Against this backdrop, Petrobras common and preferred shares gained more than 4%, while Brava Energia advanced 5.08% and other oil producers followed the commodity higher. The weight of these companies in each portfolio was a key factor behind the return differences among the ETFs.
Investors also reacted to the Brazilian economy’s 0.5% growth in the second quarter. Slower economic activity reinforced expectations for additional Selic rate cuts and contributed to lower short-term interest rates. The US dollar declined by approximately 0.5% to around BRL 5.15.
AUVP11 (BTG Pactual): +1.80%
AUVP11 led the group with a 1.80% gain, outperforming the Ibovespa by 0.50 percentage point. The ETF tracks a fundamentals-based strategy that selects companies according to recurring profitability, operating returns, efficiency and leverage control.
The portfolio’s composition explains its leading performance. Petrobras preferred shares represented 14.73% of the fund, while the company’s common shares accounted for another 12.98%. Together, the two positions represented 27.71% of the portfolio. Both securities gained more than 4% as oil prices surged.
The ETF also held significant positions in Itaú Unibanco, Bradesco, Itaúsa, BTG Pactual and B3. Banks were among the sectors supporting the local market’s appreciation, adding a second positive driver to the portfolio.
AUVP11’s outperformance was not merely a result of the broader market advance. Its high Petrobras allocation amplified the fund’s participation in the session’s main corporate and sector move.
NSDV11 (Nu Asset): +1.53%
NSDV11 advanced 1.53%, posting the group’s second-largest gain. The ETF tracks a portfolio of Ibovespa companies with consistent dividend-payment records.
The strategy combined significant exposure to utilities, financial institutions, basic materials and oil. These industries were among the session’s main outperformers and represented most of the portfolio.
Major holdings included BB Seguridade, CSN Mineração, Copasa, Taesa, Gerdau Metalúrgica, Vale, Petrobras, Itaúsa, Banco do Brasil, Bradesco, Cemig and CPFL Energia. The appreciation of Petrobras and gains among banks and utilities supported several areas of the portfolio simultaneously.
The ETF’s outperformance relative to the Ibovespa shows that the session was particularly favorable to the sector profile of the dividend-paying companies selected by the index.
HIGH11 (Nu Asset): +1.39%
HIGH11 gained 1.39%. The ETF tracks the Ibov Smart High Beta Index, which selects the highest-beta companies in the Ibovespa and seeks to amplify market movements in both rising and falling sessions.
Consumer discretionary companies accounted for 46.3% of the portfolio, which also held exposure to basic materials, oil and gas, industrials, financial services and healthcare. Holdings included CSN Mineração, Ultrapar, Assaí, Vamos, Cosan, Yduqs, CSN, Magazine Luiza, Cogna, Usiminas and B3.
The broad market advance supported the high-beta strategy. The portfolio benefited from companies that are particularly sensitive to economic activity and financial conditions as slower GDP growth reinforced expectations for additional Selic rate cuts.
Despite this backdrop, HIGH11 outperformed the Ibovespa by only 0.09 percentage point. This indicates that the session’s gains were not limited to the most volatile stocks. Petrobras, banks, utilities and defensive companies also played significant roles.
QLBR11 (BTG Pactual): +1.34%
QLBR11 advanced 1.34%, performing nearly in line with the Ibovespa. The ETF selects Brazilian companies according to quality and valuation criteria, including operating efficiency, profitability, financial strength and attractive prices.
Financial services represented 27.57% of the portfolio, with XP Inc., BB Seguridade, Itaúsa, Porto Seguro and Inter among the major holdings. Gains among banks and other financial companies supported the ETF’s performance.
The fund also held significant exposure to utilities, real estate and consumer discretionary companies. ISA Energia, Taesa, Cyrela, Cury and Porto Seguro were among its largest individual positions.
DIVO11 (Itaú): +1.22%
DIVO11 advanced 1.22%. The ETF tracks the B3 Dividend Index, which consists of companies that stand out for distributing dividends and interest on equity.
The portfolio held significant positions in BB Seguridade, Petrobras, Itaúsa, Cemig, Copasa, Banco do Brasil, Bradesco and electric utility companies. These industries were among the local market’s main outperformers during the session.
Petrobras contributed directly to the result, but its weight was lower than in AUVP11. The fund’s exposure across banks, insurers, utilities, mining and energy reduced its concentration in the oil-driven move.
DIVO11 underperformed the Ibovespa by 0.08 percentage point. The difference was limited and consistent with a session in which Petrobras made a meaningful contribution to the index while defensive sectors commonly found in dividend strategies also advanced.
BVBR11 (Investo): +1.19%
BVBR11 gained 1.19%. The ETF tracks a defensive strategy that combines quality, value, low volatility and dividend-history criteria.
Vale represented 14.92% of the portfolio, Petrobras preferred shares accounted for 12.92% and Itaú Unibanco represented 12.23%. Other holdings included Bradesco, Itaúsa, Axia Energia, Santander, Petrobras common shares, Ambev and WEG.
Financials, materials, energy and utilities represented approximately 84% of the fund’s exposure. Petrobras and banks supported performance, while diversification across more defensive companies moderated the ETF’s sensitivity to the market rally.
LVOL11 (Nu Asset): +1.10%
LVOL11 advanced 1.10%. The ETF represents a low-volatility strategy within the Ibovespa universe, favoring stocks that have historically experienced more moderate price fluctuations.
The positive result followed the broad increase in Brazilian equities but trailed the Ibovespa by 0.20 percentage point. The difference was consistent with a session partly led by Petrobras and other stocks that posted stronger price movements.
Low-volatility strategies are not designed to amplify market rallies. Their portfolio construction seeks to reduce exposure to more unstable stocks, which can limit participation during strong and widespread advances.
BMMT11 (Bradesco): +1.09%
BMMT11 gained 1.09%, the smallest return in the group. The ETF tracks the Morningstar Brazil Target Momentum Index, which selects 30 Brazilian stocks based on recent performance and profitability indicators.
Each stock receives an equal weight, preventing the largest companies from dominating the portfolio. This feature helps explain the ETF’s underperformance relative to the Ibovespa in a session when Petrobras, one of the largest constituents of the broad index, gained more than 4%.
The strategy participated in the broader market advance but did not capture the concentrated moves in oil, banks and other large companies with the same intensity.
