OREANDA-NEWS. February 1, 2012. Two new Exchange traded funds (ETFs) are available for trading on BM&FBOVESPA. One of the funds, the IT Now Idiv Index Fund, tracks the Dividend Index (IDIV), which measures the performance of shares in companies that have the largest remuneration for investors, in dividends and interest on own capital. The IT Now Imat Index Fund, for its part, tracks the Basic Materials Index (IMAT), which measures the performance of shares that are most representative of the Basic Materials sector.

The ticker symbols for the two new ETFs are DIVO11 and MATB11.

As well as the two new products, there are ten other ETFs traded on BM&FBOVESPA: three for broad indexes (BOVA11, which tracks the Ibovespa; BRAX11, which tracks the IBRx-100; and PIBB11, which tracks the IBrX-50); five sector indexes (CSMO11, which tracks the consumer index; MOBI11, which tracks the real estate index, FIND11, which tracks the financial index; ISUS11, which tracks the Corporate Sustainability Index; and GOVE11, which tracks the Corporate Governance Trade Index), as well as two capitalization-weighted indexes (SMAL11, which tracks the index of listed small caps; and MILA11, which tracks listed mid and large caps). Get to know them all.

When acquiring units in an ETF, the investor invests in a stock portfolio made up of companies in different areas of the Brazilian economy, without having to buy separate stocks in each of the firms that compose the respective index, thus significantly reducing cost. An ETF round lot is generally ten units and requires an initial minimum investment that varies, according to the investor’s choice of fund, from BRL 200 to BRL 1,000, on average, plus brokerage and custody fees. In 2011, the volume for the ten ETFs available for trading was BRL 12.11 billion, in 577,723 transactions executed on BM&FBOVESPA. This trading volume has been growing constantly, as ETFs are an excellent option for investors that wish to diversify their portfolios.