We are launching six ETF BDRs that seek to track fixed income indices comprised of US sovereign bonds

International Fixed Income ETF BDRs Now Traded on B3

Brazilian investors, who already have access to investments in stocks and equity indices abroad, can now incorporate international fixed income instruments into their portfolios.

Banco B3 is launching in partnership with BlackRock six BDRs (Brazilian Depositary Receipts) backed by fixed income index fund shares (ETFs – Exchange Traded Funds) in the North American market. These are the first ETF BDRs from this class.  

As a result, B3 has extended the range of international asset listings to create further opportunities for market expansion and offer more alternatives to diversify investments. Therefore, asset managers, pension funds and qualified individual investors now have more options to invest in different asset classes and geographies. Another evolution will be the addition of a lending functionality for these assets and the possibility of using them as collateral.

As well as BDRs, we also launched International Fixed Income ETFs that are now available to all those interested in accessing this market in a fast way in Brazilian Reals without the need to make remittances or open an account with a financial institution abroad.

Key benefits

The new asset class offers several benefits, among which:

- Easy access to international Fixed Income ETFs ensuring exposure to interest rates from foreign countries without the need to pay for costs related to remittances abroad.

- Possibility of devising strategies, diversifying investments and arbitrage with local and foreign assets.

- Trades are carried out in Brazil with settlement in local currency even if the investor is exposed to price fluctuations of a foreign asset. 

Learn about the new assets

Check out the ETFs that may be accessed through BDRs at B3 starting in February 2022. All ETFs replicate US Treasury market indices and Banco B3 is the depository bank.   

Name	Benchmark Index	Trading Session Name	Ticker	ISIN	Parity
iShares US Treasury Bond ETF	IDC US Treasury Core Index	BKR US TREAS	BGOV39	BRBGOVBDR001	3
iShares 7-10 Year Treasury Bond ETF	IDC US Treasury 7-10 Year Index	BKR 7 10 YRT	BIYT39	BRBIYTBDR000	10
iShares 3-7 Year Treasury Bond ETF	IDC US Treasury 3-7 Year Index	BKR 3 7 YRTR	BIEI39	BRBIEIBDR005	12
iShares Short Treasury Bond ETF	ICE Short US Treasury Securities Index	BKR SHORT TR	BSHV39	BRBSHVBDR000	10
iShares 1-3 Year Treasury Bond ETF	ICE US Treasury 1-3 Year Index	BKR 1 3 YRTR	BSHY39	BRBSHYBDR004	8
iShares 20+ Year Treasury Bond ETF	ICE US Treasury 20+ Year Index	BKR 20YR TRS	BTLT39	BRBTLTBDR004	15

  

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