Latam Equity Quant: Early estimates for Ibovespa and MSCI reviews

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Latam Equity Quant: Early estimates for Ibovespa and MSCI reviews

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Latam Equity Quant

Early estimates for Ibovespa and MSCI

reviews

Investment Strategy

Key takeaways 03 July 2026

Investment Strategy• First official preview of next Ibov composition will be announced on Aug 3. New

Latin America composition will be effective on Sep 8.

• As an early estimate, we think Tenda and Itau common stock (ITUB3) could be added.

Petroreconcavo could be removed.

• MSCI review will be announced on Aug 12. We monitor the risk of deletion of Stone.

This week in numbers

Performance of the week, USD terms: Ibovespa -1.2%, Mexbol -0.2%, versus the S&P

500 +1.7%, EM -1.3% in USD total return terms. Our quantitative screen of “Brazilian

David Beker >>

Magnificent 7” stocks, (Mercado Libre, Nubank, WEG, BTG Pactual, Raia Drogasil, Bz Econ/FI & LatAm EQ Strategy

Localiza, and Itaú), which has a growth bias, is -0.4% this week. Our “Unforgettable 7” Merrill+55 11Lynch2188 (Brazil)4371

screen (Petrobras, Vale, JBS, Banco do Brasil, Ambev, Bradesco, Gerdau), which has a david.beker@bofa.com

value bias, is -1.3% this week. Paula Andrea Soto, CFA >>

LatAm Equity Strategist

BDRs could be included in Ibovespa Index. B3 is evaluating a broad review of the Merrill+55 11Lynch2188 (Brazil)4226

Ibovespa methodology, with the possible inclusion of BDRs (Brazilian Depositary Receipts) paula.soto@bofa.com

among the proposals under discussion. More details in our report LatAm Equity Strategy. Carlos Peyrelongue >>

Mex Eq Strat/Research Analyst

Early Ibov preview: B3 will release its first Ibovespa preview on Aug 3. Changes take Merrill+52 55Lynch5201 (Mexico)3276

effect on Sep 8 and will be conditional to the trading volumes until the end of July. As an carlos.peyrelongue@bofa.com