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[BUSINESS] · Brazil · 5 sources

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Brazil's B3 launches Small‑Cap Smart Rebal index for low‑cap stocks

Brazilian stock exchange B3 introduced the Small Cap Smart Rebal (SCSR) index, designed to track the performance of listed equities with the smallest market capitalisation. To qualify, a security must be outside the group that represents the top 85% of market value on B3’s spot market, be among assets that in the three previous portfolios covered 99% of the tradability index, have a minimum 95% presence in trading sessions and not be classified as a penny stock (traded below R$1). The index weights each stock by the number of shares outstanding, which B3 says better reflects available liquidity. The SCSR will begin trading linked to XP’s XCAP11 exchange‑traded fund. "We created an index that follows small caps with fewer portfolio movements during rebalancings. This brings more predictability for managers and investors and can facilitate the development of funds and ETFs linked to the indicator," said Hênio Scheidt, product manager at B3.

Entities

B3 (Brasil Bolsa Balcão) · Hênio Scheidt · Small Cap Smart Rebal Index (SCSR) · XCAP11 ETF · XP Investimentos

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