Genial Investimentos debuts first private-credit ETF with R$33.5 million in assets

GICP11 focuses on high-quality debentures as Brazil’s fixed-income ETF market enters a new growth phase.

Oct 9, 2025 1:12 PM

By Brazil Stock Guide – Brazilian brokerage Genial Investimentos has launched its first Exchange Traded Fund (ETF), expanding into the country’s fast-growing fixed-income segment. The Genial Teva Debêntures DI Quality High Beta ETF (B3: GICP11) debuts on Thursday (Oct 9) with R$33.5 million (US$6.1 million) in initial assets.

According to Rafael Zlot, Genial’s Head of Fixed Income, the new ETF offers “an efficient and differentiated alternative in a promising market.” Brazil’s fixed-income ETF industry has expanded more than 320% since 2019, based on data compiled by B3 and Quantum Axis. “ETFs give investors access to diversified portfolios that were previously limited to large institutions,” he said.

The fund is composed of 99% debentures and 1% Treasury Bills (LFTs), focusing on high-quality issuers and longer-term maturities. The main sectors represented are Oil & Gas (13.7%), Power Generation (12.3%), and Sanitation (10.8%). A back-tested simulation shows a 48.5% three-year return, outperforming the CDI benchmark at 42.8% (as of September 2025).

Luis Iglesias, the analyst who developed the ETF, noted that “among the 24 fixed-income ETFs focused on Brazilian assets, only three target private credit — an area where Genial has deep expertise.” The firm manages over R$7 billion (US$1.3 billion) across fixed-income and private-credit funds.

Priced at R$10 per share, with a 0.5% annual management fee and no performance fee, GICP11 also offers tax advantages, including no IOF and no “come-cotas” semi-annual taxation, improving long-term net yields for retail investors.

Second expansion wave

Genial’s debut comes amid a structural boom in Brazil’s ETF industry. Total assets under management have surpassed R$100 billion, driven by the rise of digital investment platforms and investors seeking diversification and tax efficiency, according to B3 and Quantum Axis data.

Since 2020, the number of fixed-income ETFs listed on B3 has grown from 3 to over 24, with rapid expansion in private-credit and ESG-labeled products. The segment is currently dominated by three large players — Itaú Asset Management, XP Asset, and BTG Pactual Asset Management — which together account for roughly 70% of total ETF trading volume, based on Quantum Axis estimates.

Genial’s entry into this field signals a second growth wave for Brazil’s ETF market, characterized by specialized, low-cost, and exchange-listed fixed-income strategies.