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It is an indicator of the performance of a portfolio of shares, securities, or assets that is meant to represent a given market, sector, or segment. An index also serves as a thermometer for evaluating a group of shares over time. In Brazil, for example, Ibovespa is generally used as a reference for the Brazilian stock market.
How does one index differ from another?
Depending on different objectives and methods of building indexes, each index may represent different returns and characteristics. Ibovespa, for example, seeks to follow the companies traded most on the securities exchange, while the BM&FBovespa MidLarge Cap Index encompasses companies with the highest capitalization values listed on the BM&FBovespa.
They are funds that seek to obtain the yield of a given index, and their shares are traded on the securities exchange.
What are iShares ETFs?
iShares are a family of Index Funds, known in other countries as ETFs (Exchange Traded Funds), which are managed by Barclays, the largest global manager of ETFs. In Brazil, the iShares Index Funds are managed by BGI Brasil Gestora de Investimentos Ltda.