Last updated: 15:37 / Tuesday, 29 April 2014
To US Equities

BlackRock Launches First Locally-Listed ETF in Brazil with International Exposure

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BlackRock Launches First Locally-Listed ETF in Brazil with International Exposure
  • iShares S&P 500 provides Brazilians opportunity to diversify their investments to US equities in an ETF
  • Highlights BlackRock’s commitment to delivering global platform to Brazilian investors
  • IVVB11 will be denominated in Brazilian reais, and will invest directly in iShares Core S&P 500 ETF (IVV), BlackRock’s leading US-listed product

BlackRock has launched the first locally-listed exchange traded fund (ETF) in Brazil with international exposure. iShares S&P 500 began trading on the BM&FBOVESPA in São Paulo with the ticker IVVB11.  iShares S&P 500 will be managed by BlackRock.

For the first time today, Brazilian investors can diversify their investments to international equities while enjoying the advantages of an ETF.  ETFs provide investors with a diversified portfolio of securities which can be traded throughout the day, on an exchange. Investors have increased their usage of ETFs in Brazil due to the convenience, cost-efficiency and transparency that ETFs provide.

iShares S&P 500 is the first locally-listed ETF in Brazil that will provide exposure to US equities. IVVB11 will be denominated in Brazilian reais, and will invest directly in iShares Core S&P 500 ETF (IVV), BlackRock’s leading US-listed product.   IVV provides exposure to large-cap US stocks. Investors of all sizes use IVV due to its cost-efficiency and liquidity.  IVV has grown to over $53bn in AUM since it launched in May 2000.

Armando Senra, Head of BlackRock’s Latin America & Iberia Business, commented: “Launching iShares S&P 500 represents another critical step in delivering local and global investment solutions to investors in Brazil. We are committed to continuing to build our presence in this important market. In addition to our longstanding commitment to Brazil, we want to create investment solutions that allow Brazilian investors to take advantage of our global reach.  We would like to thank the CVM, BM&FBOVESPA, Citibank and Credit Suisse for their partnership in bringing this product to Brazilian investors.”

Bruno Stein, Head Business Development for BlackRock in Brazil, commented: “BlackRock has deep experience in developing innovative solutions for investors in Brazil.  We launched the first local ETF in Brazil in 2008.  We recently partnered with Banco do Brasil to deliver the first local international investment solution to Brazilian pension funds through a local feeder fund into BlackRock’s Global Equity Income Fund. Our partnership with Banco do Brasil and the launch of iShares S&P 500 demonstrate BlackRock’s continued commitment to delivering our global platform through various investment strategies to clients locally in Brazil.”

Karina Saade, Head of BlackRock Product for Latin America and Iberia, commented: “iShares S&P 500 is a very important development for Brazilian investors.  It provides investors with a greater range of options as they increasingly explore a more diverse range of strategies – including investments beyond their own borders – in response to changes in local market conditions.  As Brazilian investors take hold of new opportunities, BlackRock has an active role to play in delivering solutions that minimize investor costs and the complexities of allocating abroad.”

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