Investo launches BNKS11, Brazil's first bank‑focused ETF on B3

Investo, an independent ETF manager, announced the launch of BNKS11, the first exchange‑traded fund listed on Brazil's B3 that provides exclusive exposure to the domestic banking sector. The fund tracks the Índice Bancos Brasil B3, which comprises eight publicly traded banks – Itaú Unibanco, Banco do Brasil, BTG Pactual, Bradesco, Banrisul, ABC Brasil, Banco Pine and BR Partners – weighted by free‑float market value and rebalanced every four months with limits to avoid concentration.

BNKS11 carries an annual management fee of 0.50%, in line with other sectoral ETFs. Investo’s CEO Cauê Mançanares highlighted the sector’s strong cash generation, high return on equity (15‑25% per year) and resilience, noting that the underlying index has delivered a 469% cumulative return since April 2011, outpacing the Ibovespa and other benchmarks even during the 2008 financial crisis, the 2015‑16 recession, the COVID‑19 pandemic and recent agribusiness stress. The manager also sees high‑interest‑rate environments and Brazil’s lower credit‑to‑GDP ratio as supportive of future profitability and credit expansion.