In seeking to meet the demands of its market participants, B3, Brazil’s exchange, is launching the B3 Agribusiness Index (IAGRO B3), a stock index set to be the average performance indicator for shares of listed companies classified as Agribusiness according to the Agro B3 Classification.

The Agro B3 Classification will use its own methodology to classify listed companies, based on their business description, their institutional positioning, the National Classification of Economic Activities (CNAE 2.0) of the Brazilian Institute of Geography and Statistics (IBGE), etc. Therefore, the classification goes beyond the sectors directly linked to Agribusiness and takes into account companies that supply inputs for agricultural production or that operate in agribusiness related services, for example. 

The IAGRO B3 methodology is similar to other B3 stock indices and the selection criteria include: 

1. Be a company classified as Agribusiness, according to the Agro B3 Classification. 

2. Be among the eligible assets which, in the validity period of the three previous portfolios in descending order of the Tradability Index (IN), collectively represent 99% of the sum total of those indicators (see B3 Index Definitions and Procedures Manual).  

3. Be present in 95% of trading sessions in the validity period of the three previous portfolios. 

4. Not trade as a penny stock (see B3 Index Definitions and Procedures Manual).  

Check out the complete IAGO B3 methodology  

It should be noted that IAGRO B3 is the first agro-themed index on Brazil’s exchange. Its creation is a major step to facilitate investment in this economy sector as it allows new products with exposure to agribusiness, such as ETFs and other liability funds, to be offered to investors.  

To learn more about index-based investment options, check out B3’s Financial Education Hub. For additional clarifications, please contact us at [email protected].