Galapagos Capital has launched GLMP11, an innovative ETF on the B3 stock exchange focused on clean energy, with strategic support from BNDES. It marks a milestone for sustainable investments in Brazil.
Significant advancements in the Brazilian financial landscape mark the debut of GLMP11, the latest ETF (Exchange Traded Fund) from Galapagos Capital. It arrives on the B3 with a clear objective: to democratize access to clean energy investments.
This new fund reflects the market’s growing appetite for assets aligned with sustainability and the energy transition, offering investors a direct entry point into the Brazilian companies leading this vital sector.
The launch not only diversifies sustainable investment options in the country but also features a decisive boost from the Brazilian Development Bank (BNDES).
Acting as an anchor investor, the state-owned bank is matching the asset manager’s initial contribution, underscoring the nation’s commitment to decarbonizing the economy and fostering financial solutions that support this agenda.
Green Boost on the Brazilian Stock Exchange
GLMP11, which tracks the Teva Clean Energy Stock Index, is one of five products selected through a specific BNDES call for proposals, demonstrating the initiative’s relevance to the development of the ETF market in Brazil.
The index, calculated by Teva Índices, includes companies operating across various segments of the sustainable energy chain—from power generation, transmission, and distribution to companies involved in biofuel production, such as sugar and ethanol.
This fund is aimed at both retail and institutional investors, featuring a competitive management fee of 0.20% per year.
The presence of BNDES is a crucial factor, as it not only adds capital but also projects a seal of credibility, the Anbima ESG label, which is expected to boost the product’s liquidity and scale, making it more attractive and accessible in the market.
Strategy and Methodology
With the launch of GLMP11, Galapagos Capital reinforces its strategy of identifying and filling market gaps with high-demand products.
Bruno Stein, the partner responsible for ETFs at Galapagos Capital, emphasizes the importance of government support.
This ETF follows our strategy of launching products for which there is already demand, where we seek to be the first to offer them with the best index or the lowest cost in the market. The bank’s participation in the fundraising helped with visibility and volume for the thesis, in addition to contributing to the fund reaching a size compatible with the entry of institutional investors, such as pension funds, more quickly.
The methodology of the Teva Clean Energy Stock Index is rigorous, selecting companies based on criteria such as liquidity, market capitalization, and financial strength.
To avoid excessive concentration, each company’s participation in the portfolio is capped at 15%.
Eligible companies must have a market value of over R$ 5 billion and an average monthly trading volume exceeding R$ 100 million.
The index composition is reviewed and rebalanced semiannually, ensuring that the portfolio remains up-to-date and aligned with the dynamics of the clean energy sector, which, according to Stein, is an investment thesis that “could last for decades.”
The Future of Sustainable Investments
With GLMP11, Galapagos Capital reaches the milestone of 11 ETFs on its platform, which already holds over R$ 660 million in net assets and approximately 5,400 shareholders, according to August data.
This robust expansion, which includes fixed income products, international stocks, physical metals, and crypto-assets, now extends significantly into the field of clean energy.
GLMP11 is not just a new financial product; it represents an important step in consolidating Brazil as a hub for green investments.
By offering a transparent and regulated path for capital to flow toward companies committed to sustainability and decarbonization, Galapagos Capital’s ETF, with the endorsement of BNDES, acts as a catalyst for economic development in a responsible and promising way.
This launch signals a future where profitability walks hand-in-hand with environmental responsibility, paving the way for a greener and more resilient economy.
