As of Wednesday, July 13, two new International Fixed Income ETFs (Exchange Traded Funds) will be made available by B3, allowing for greater diversification of your investment strategy.

As of Wednesday, July 13, two new International Fixed Income ETFs (Exchange Traded Funds) will be made available by B3, allowing for greater diversification of your investment strategy. USDB11 and BNDX11 are index funds from Investo, an independent Brazilian asset manager specializing in ETFs. The funds are focused on institutional and retail investors who wish to gain exposure to interest rates from other countries in a practical and accessible way, without red tape or remittances of funds abroad.  

 

The USDB11 Fund (Investo Bloomberg US Bond ETF Index Investment Fund – Investment Abroad) is a domestic gateway to the well-known BND US-bond ETF (Vanguard Total Bond Market ETF). It seeks to represent the mid-term US fixed income market and its portfolio comprises 10,000+ investment grade bonds. The USDB11 initial share price is BRL100 and it is an affordable gateway for Brazilian investors to diversify their investments in the U.S. economy.

 

The BNDX11 fund (Investo Bloomberg Global Bond ETF Index Investment Fund – Investment Abroad) seeks diversified exposure in more than 6,000 global fixed income securities outside the United States, offering greater exposure to developed markets in Europe and the Pacific. Today these regions account for 57% and 24% respectively of the fund's total asset distribution. To ensure this representation, the fund invests almost entirely in the BNDX US-bond ETF (Vanguard Total International Bond ETF). As with USDB11, the goal of the BNDX11 is to enhance investor accessibility with an initial share price of BRL100.

 

Both funds are managed by BNP Paribas Bank Brazil and have a secondary market settlement cycle of T+2.

 

It should be noted that investors should know their profile, risk appetite and how financial market products are traded before acquiring any investment and make sure that the product they choose is in line with their strategy and financial objectives. Click here to learn more about how these ETFs work.