Good experience with cryptocurrencies leads to B3 expanding ETFs

Good experience with cryptocurrencies leads to B3 expanding ETFs

As of next Monday (30), ETFs (Exchange traded funds) of local and international dividend-paying stocks can be listed and traded on B3, the Brazil Stock Exchange.

ETFs are mutual funds whose quotas are traded on an exchange, which guarantees more liquidity for the investor. They are called index funds because they track the performance of a reference index, which can be Brazilian or international. When you buy an ETF, you buy a diversified portfolio of assets.

The ETF manager may set a periodicity for the distribution of income in the fund rules. It can be monthly, semi-annually, annually or any other period, but never less than 30 days.

Experience with cryptocurrency ETF launches enabled B3 to launch new products

The product emerges as a new diversification opportunity for the investor, who can now also trade cryptoassets, fixed income ETFs, in addition to the already traditional equity index ETFs such as those after the Ibovespa B3 and the ISE B3.

We see the expansion of the range of available products very positively, so that investors can choose investments that suit their risk profile, their objectives and the need for portfolio diversification, which is so important for risk management.said Marcos Skistymas, Inspector of Equity, Interest and Currency Products at B3.

Income paid by ETFs is subject to income tax withheld by the manager at a rate of 15%.

It is worth remembering that already listed ETFs will no longer pay out income. That is, only new funds listed under these terms can pay returns.

ETFs in Numbers at B3

ETFs are equivalent to a diversified basket of stocks with exposure to different asset classes, with geographic and sector breakdowns, by company size and markets.

Today, there are 91 ETFs available for trading on the Brazilian exchange, including 80 variable income ETFs (33 local and 47 international) and 11 fixed income ETFs. In recent days, a company has informed the market that it is already in talks with the CVM to launch the world’s first quantitative cryptocurrency ETF at B3.

In 2022, B3 recorded 92 million transactions with ETFs, which moved an average of BRL 1.489 billion per day. Of the 536,000 investors in the product, nearly 532,000 investors operate as private individuals.

To invest in ETF products, investors should look for brokerage firms that operate in the market and are sold in the same way as a stock.

B3 SA (B3SA3) is one of the world’s leading financial market infrastructure companies. For example, in market value, it remains one of the largest among the global leaders in the handbag sector.

Source: Live Coins