The debentures must have an issue equal to or greater than 300 million reais. And the monthly trading volume must be at least BRL 10 million,
Estimated reading time: 3 minutes
On June 28, the Brazilian stock exchange, B3, began trading its first index fund, known as ETFs (Exchange Traded Funds), for the private credit of Brazilian companies. The ETF Debentures DI by BTG Pactual was launched in partnership with Teva Indices.
ETF Debentures DI accounts are traded by the symbol DEBB11. Investment negotiations have started with the initial value of R$10 per share. The administration fee is 0.6% per year. The target investment portfolio includes more than 80 CDI-indexed debentures.
The BTG fund gives investors access, through a single paper, to a diversified portfolio of corporate bonds of listed companies. The launch increases the portfolio of fixed income ETFs available on the Brazilian exchange. In all, there are 8 such assets on B3.
Until then, 6 ETFs were exposed to government bonds and 1 ETF to DI futures. Now, B3 is exposed to corporate securities, in order to increase diversification.
How is the Debenture Index ETF formed?
To be included in the index, debentures must have an issue equal to or greater than R$300 million. And the monthly trading volume must be at least BRL 10 million and 40% attendance on trading days.
Once added, the assets follow at least one year in the composition of the index. This, except in case of credit events. Currently, the index portfolio includes 90 assets from 61 issuers. Once a month, it is rebalanced to follow the evolution of the market.
In addition to allowing diversification of portfolio exposure in a simple way, debentures have another advantage, which is differentiated taxation. Since the lifetime of the ETF is more than 720 days, the income tax rate is 15%, regardless of the duration of the asset’s permanence, as for stocks.
Either way, want to stay up to date with everything that’s going on in the world of finance?
Then follow us on the YouTube channel and on our social networks such as Facebook, Twitter, Instagram and Twitch. Thus, you will follow everything related to digital banks, credit cards, loans, fintechs and topics related to the world of finance.
Image: ITTIGallery / Shutterstock.com