The Brazilian Stock Exchange presents an innovative product: the Nu Renda Ibov Smart Dividends ETF (NDIV11),
which offers monthly distribution of dividends to investors . This initiative is the result of a partnership between Nubank's Nu Asset manager and B3 , the Brazilian stock exchange. ETF trading began on September 29th.
This ETF follows the Ibovespa Smart Dividends B3 and includes companies that are part of Ibovespa and are among the 25% largest dividend payers on the stock exchange. A total of 21 companies make up the index, with emphasis on government companies such as Vale do Rio Doce, Banco do Brasil and Cemig . The portfolio is valid until December 29th, with rebalancing every four months, limiting exposure to a single company to 20%.
Portfolio composed of the NDIV11 ETF . Source: B3 - composition of the portfolio on September 29, 2023 - Note: The portfolio changes assets every 4 months.
The Nubank ETF is available on B3 for all investors , regardless of whether they have an account with Nubank or Nu Invest, with redemption on T+2 . The minimum initial investment is R$100 per share, subject to variations depending on the asset's capital gain. The administration fee is 0.5% , with no performance fee charged.
Income tax is applied to the sale of ETFs, with a taxation of 15%. IR on earnings paid to shareholders , collected directly by the fund administrator.
Ultimately, the Nubank ETF is good news for investors looking for income, and will be another alternative in the vast menu of investments made available by B3. It now remains to be seen how the ETF will perform and that only takes the long term to prove.
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