Bringing you live news and features since 2006 

MarketVector Indexes licenses three Brazilian Equity Indexes to Investo ETFs

RELATED TOPICS​

MarketVector Indexes has announced the licensing of the MarketVector Brazil Domestic Exposure (BRL) Index (ticker: MVBRDE), the MarketVector Brazil Global Exposure (BRL) Index (ticker: MVBRGE) and the MarketVector Brazil Small-Cap Value (BRL) Index (ticker: MVBRSV) to underlie Investo ETFs’ new Domestic Equity ETFs.

“We are proud to introduce three new equity indexes for the Brazilian market, including the newest members of our unique Economic Exposure Index family,” says Steven Schoenfeld, CEO of MarketVector Indexes. “With Brazil’s vitally-important Presidential election in October, the timing of our introduction of these indexes and the Investo ETFs that track them will enable investors to express their views on the Brazilian economy regardless of the election’s outcome,” he adds.

The firm writes that with such a dynamic and important economy, the approach of both global and local investors to the Brazilian equity market is ripe for innovation. The firm says that MarketVector Brazil Economic Exposure Indexes (MVBRDE and MVBRGE) provide, for the first time, a way for investors to gain more precise exposure to the economic and industry trends driving the Brazilian economy, as well as an efficient vehicle to diversify their existing Brazil equity exposures. And the Market Vector Brazil Small-Cap Value Index (MVBRSV) provides unique and targeted exposure to a segment of Brazil’s equity market that is often ignored, the firm says.

The indexes are reviewed on a semi-annual basis and are calculated in USD as price indexes and total return net indexes. The MarketVectorTM Brazil Domestic Exposure (BRL) Index (ticker: MVBRDE) and the MarketVectorTM Brazil Global Exposure (BRL) Index (ticker: MVBRGE) are weighted by float-adjusted market capitalization.

“These products offer a new way for investors to access the Brazilian equity market in a more intelligent and efficient way. By offering two products that focus on Global Exposure companies and Domestic Exposure companies, we allow investors to build their allocations according to what they understand to be the moment of the economy,” says Cauê Mançanares, CEO of Investo. “The best-known index in the Brazilian market is the Ibovespa. Meantime, the Ibovespa has some inefficiencies, such as a large concentration in a few large companies. The Brazil Economic Exposure ETFs complement an allocation purely on Ibovespa, as they allow investors to choose which segment of companies has the greatest potential, those that serve the Brazilian market or those that serve the markets outside Brazil.”

The MarketVectorTM Brazil Small-Cap Value (BRL) Index (ticker: MVBRSV) is weighted based on value-focused fundamental factors.

“The Brazilian Small-caps ETF brings to Brazil a multi-factor investment strategy that is already established around the world, allowing Brazilian investors to systematically invest in companies with small capitalization and low multiples without worrying about spending time analysing the financial statements of any company. It is an alternative for those who want to invest in Brazilian Small-caps, but focusing on the companies that are undervalued when compared to their peers,” says Mançanares.

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by