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All four real estate ETFs in this selection ended the trading session in positive territory, albeit driven by different catalysts. XFIX11 advanced 2.52%, HERT11 rose 2.45%, CASA11 gained 0.40%, and ALUG11 added 0.39%. The first two hold Brazilian real estate funds (FIIs) and respond to local interest rates, distributed income, and domestic share prices. The other two expose investors to US-listed real estate assets, introducing the US dollar exchange rate into the equation. In CASA11, an options strategy also influences overall performance.
Gains in XFIX11 and HERT11 should also be viewed through the lens of liquidity. XFIX11 registered six-month daily averages of approximately 502 trades and R$ 316,000 in trading volume. HERT11 averaged just six trades and R$ 29,000 daily. In both cases, but particularly for HERT11, last-traded prices can move more significantly than underlying net asset values when few orders clear the order book.
XFIX11 (XP Asset): +2.52%
XFIX11 tracks the IFIX L, a total return index composed of the most liquid real estate funds. In the portfolio valid for the four-month period, KNCR11 held an 8.82% weight, followed by KNIP11 at 5.56%, BTLG11 at 5.33%, HGLG11 at 5.18%, and XPML11 at 4.93%. This composition blends real estate credit, logistics, and shopping centers.
Paper funds, led by KNCR11 and KNIP11, account for a significant portion of total returns and are supported by CDI yield and IPCA inflation accrual plus spread. Meanwhile, BTLG11 and HGLG11 capture rental income and property appreciation from logistics warehouses, while XPML11 reflects the operational performance of shopping malls.
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HERT11 (Hedge Investments): +2.45%
HERT11 replicates the FTSE Hedge Brazil All Equity REITs Index, focused on physical property FIIs with higher market capitalization and liquidity. The reference portfolio disclosed by the manager assigned 9.39% to HGLG11, 9.25% to XPML11, 7.82% to BTLG11, 6.72% to KNRI11, 4.45% to XPLG11, 4.44% to VISC11, and 4.28% to HGRU11.
Logistics and shopping centers dominate the portfolio. HGLG11, BTLG11, and XPLG11 expose the ETF to industrial warehouses, lease contracts, and asset recycling. XPML11 and VISC11 add tenant sales performance, occupancy levels, and rental adjustments. KNRI11 and HGRU11 expand presence into office towers, retail, and urban income properties.
CASA11 (Buena Vista): +0.40%
CASA11 offers exposure to the US real estate market via the NEOS Real Estate High Income BR Index, linked to the IYRI ETF. In NEOS’s disclosed portfolio, Welltower represented 11.53% of total assets, Prologis 8.89%, Equinix 4.92%, Digital Realty 4.82%, and Simon Property Group 4.62%.
At the US close on October 6, IYRI advanced 0.67% in market price. Strength in names like Equinix, which rose 2.34%, supported the portfolio’s data center allocation. The Real appreciated against the US dollar, trimming returns converted into Brazilian currency; CASA11 closed up 0.40% on B3.
IYRI utilizes call options to generate monthly income, and the index followed by the Brazilian ETF incorporates a laddered portfolio of out-of-the-money sold calls with monthly renewals. Premiums collected add a return stream, while options obligations can limit upside participation during sharper rallies in underlying assets.
ALUG11 (Investo): +0.39%
ALUG11 replicates the Vanguard Real Estate ETF (VNQ), which gathers approximately 139 US real estate companies. The portfolio covers cell towers, data centers, logistics warehouses, shopping centers, apartments, healthcare facilities, and self-storage. Key benchmark names in this universe include American Tower, Prologis, Equinix, Welltower, and Simon Property Group.
The MSCI U.S. REIT Index advanced 0.87% in US dollar terms during the session, while American Tower rose 1.55%. However, the US dollar lost approximately 0.5% against the Real. This combination reduced gains translated into Brazilian currency and explains why ALUG11 advanced only 0.39%, trailing domestic FII ETFs.
This content is for informational purposes only and does not constitute an investment recommendation.
