Btg Pactual Teva Tesouro Ipca Ultra Longo Ce Fundo De Indice – Responsabilidade Limitada

What it is

PACB11 is a fixed-income ETF — a listed fund you can buy and sell on the stock exchange like a share — that tracks the ITBR-IPCA Ultra Longo Convexity Enhanced index. Launched on 12 July 2024, it aims to replicate the performance of the three longest-maturity inflation-linked government bonds (NTN-Bs) traded in Brazil.

With an average duration above 14 years — meaning its price swings sharply when interest rates move — PACB11 is the longest-maturity Tesouro IPCA ETF in Brazil and the only one of its kind with a built-in convexity tilt. Each bond in the portfolio must have at least R$100 million (US$19 mn) in trading volume over the two months before rebalancing, and a remaining life to maturity of at least 20 years.

“Convexity” — the feature embedded in the index design — means the fund is engineered to capture more of the gain when rates fall than the loss it suffers when rates rise, a property that professional fixed-income managers actively seek. The index is a total-return measure, recalculated monthly, that includes both price changes and any coupon income paid by the underlying bonds.

Who owns it

The fund is governed under CVM Resolution 175 and is open to all investors — retail or institutional — with no minimum wealth requirement. The minimum investment is R$10.00 (about US$1.92), the price of a single unit at launch.

Because PACB11 is a publicly traded open-end index fund rather than a company with shareholders, there is no controlling family or anchor blockholder: the unitholders are the general investing public, and their proportions are not disclosed individually. The fund was created as a joint venture between BTG Pactual, Latin America’s largest investment bank, and Teva Índices, the index provider that designed the benchmark.

Who runs it

Day-to-day portfolio management is carried out by BTG Pactual Asset Management S.A. DTVM, with BTG Pactual Serviços Financeiros S.A. DTVM acting as fund administrator; the annual management charge is 0.19%. Júlio Filho, head of fixed income at BTG Pactual Asset Management, described the fund’s aim as capturing inflation “on the long end of the curve,” delivering greater upside in rate-cutting cycles and greater predictability when rates rise.

PACB11 is the third ETF born from the BTG–Teva partnership, which also produced CMDB11 (a Brazilian commodities equity ETF) and DEBB11, the first private-credit ETF in Brazil, which tracks a basket of debentures with market liquidity.

The money, in plain words

As of 18 June 2026, the fund holds net assets of R$1.58 billion (about US$304 million), with the total portfolio at market value of R$1.58 billion (US$304 mn). The unit price has risen 8.30% over the past year — respectable for a fund that owns only government bonds, though well below the gain it would deliver if Brazil’s long real rates were to fall sharply.

The fund pays no distributions; all coupon income from the underlying bonds is reinvested inside the portfolio, so the investor’s return arrives entirely through price appreciation of their units. Over the past 52 weeks, the unit has traded between R$9.77 (US$2)and R$11.22 (US$2)— a range of about 15%, reflecting how much the market’s view of long-term real interest rates has shifted.

The primary risk is the fund’s high duration: because the bonds it holds mature so far in the future, even a small rise in real interest rates can push the unit price down meaningfully. The flip side — the convexity premium — is that the fall is cushioned relative to a plain long-bond fund, and any rate decline rewards holders disproportionately.

Backtest data from May 2016 to July 2024 shows the index returning 128.5% of the CDI rate, with unit price appreciation of 121.4%.

What it is doing now

Recent performance has reflected the oscillation in Brazil’s real interest rates and inflation, driven by macroeconomic conditions, monetary policy, and the shape of the yield curve. Average daily traded volume is R$237,250 (~US$45,600) — thin by the standards of a liquid equity ETF, which means investors should use limit orders and be aware that large trades may move the price.

PACB11 sits within a growing BTG–Teva product family, and the parent bank’s broader expansion — BTG Pactual reported a record profit in Q1 2026, per B3 filings — suggests the asset-management platform sponsoring this ETF is well-capitalised and not at risk of closure. The fund’s net assets have grown from near-zero at its July 2024 launch to R$1.58 billion (US$304 mn) in under two years, a strong sign of institutional adoption.

What to watch

• Brazil’s Selic rate path. The central bank’s benchmark rate is the single biggest driver of PACB11’s unit price; any pivot toward cuts would be a tailwind, while further hikes would hurt.
• Long real rates (IPCA+). The fund holds bonds maturing beyond 2050; the spread those bonds carry above inflation is its structural return engine. Watch NTN-B yield levels at the 30- and 40-year maturities.
• Liquidity depth. Daily traded volume of R$237,250 (US$46 k)is modest; watch whether inflows push this higher as the ETF matures and gains wider broker distribution.
• Fee competition. At 0.19% per year, the fund is cheap, but rival products from Itaú, XP, and others are entering the inflation-ETF space; any fee pressure from competitors would be a positive for unitholders.

This is news, not investment advice.