Nu IBOV Smart ETF

The Nu IBOV Smart ETF is an exchange-traded fund designed to offer investors exposure to the Brazilian stock market. Its primary function is to track the performance of a diversified portfolio comprising some of the most prominent companies listed on the B3 — the main stock exchange in Brazil, headquartered in São Paulo. The ETF focuses on capturing the economic strength and growth potential of Brazil by investing across various sectors such as finance, energy, consumer goods, and materials, thereby providing a balanced investment vehicle representative of the broad market. One notable feature of the Nu IBOV Smart ETF is its strategic inclusion of securities based on a smart beta index, potentially enhancing returns by leveraging factors such as value, quality, and momentum rather than relying on traditional market capitalization. As a vehicle for international investors aiming to penetrate emerging markets, this ETF plays a significant role in democratizing access to the Brazilian equity market, facilitating portfolio diversification with comparatively lower costs and increased liquidity compared to direct stock investments.