BM&FBOVESPA starts trading in public utilities ETF

BM&FBOVESPA starts trading in public utilities ETF

 

15/05/2012

BM&FBOVESPA starts trading today in the UTIP ETF (UTIP11). This tracks the Public Utilities Index (UTIL) which measures the behavior of a portfolio composed of stocks in companies representing the public utilities sector (electricity, water and sewerage and gas). The UTIP ETF will have BlackRock as its manager.

The current UTIL Index portfolio, which is valid until August 31, 2012, is composed of 20 stocks in 17 companies. Since the start of the year, the Public Utilities Index has gained 17.1%.

ETFs are index funds traded on the Exchange like stocks and which replicate the composition of an index. An investor that buys a unit in an ETF is making a simultaneous investment in a share portfolio composed of companies in different sectors of the Brazilian economy, without having the buy the separate shares of the respective index.

Generally speaking, round lots are made up of 10 units with a management fee of under 0.75% and require an initial minimum investment that ranges from BRL 200 to BRL 1,000 (depending on the ETF that the investor selects), plus brokerage and custody fees. In April, the 12 ETFs traded on BM&FBOVESPA totaled 73,632 transactions and a financial volume of BRL 2.69 billion.

The other ETFs traded on BM&FBOVESPA are:

  • BOVA11 which tracks the IBOVESPA;
  • BRAX11 which tracks the IBRx-100;
  • PIBB11 which tracks the IBrX-50);
  • CSMO11 which tracks the consumer index;
  • MOBI11 which tracks the real estate index;
  • FIND11 which tracks the financial index;
  • ISUS11 which tracks the Corporate Sustainability Index;
  • GOVE11 which tracks the performance of companies that voluntarily adopt differentiated corporate governance standards;
  • IDIV11 which tracks the Dividend Index;
  • IMAT11 which tracks the packaging, wood and paper, various materials, mining, chemicals, steel and metal sectors;
  • SMAL11 which tracks the performance of the index comprised of listed small caps; and
  • MILA11 which tracks the performance of listed mid and large caps).