IFIX

IFIX Futures

• The product

  The B3 Real Estate Investment Fund Index (IFIX) is compiled as a weighted average of a theoretical portfolio of shares of exchange-traded and OTC-traded real estate funds pursuant to criteria set forth in its methodology.

  IFIX is a total return index, which measures components real estate funds’ price movements, in addition to assuming that distributions are reinvested into the index.

  The IFIX Futures allow participants to trade future expectations of the real estate fund’s market, without the need to buy the entire basked of shares that composes the index. Consequently, exposing its portfolio to the indicator.

• Specifications

  Underlying	IFIX
  Ticker	XFI
  Contract size	IFIX futures contract multiplied by the index point value in Brazilian Reals, each point BRL 10.00
  Quotation	Index points
  Tick size	0.10 index points
  Round-lot	1 contract
  Last trading day	3rd Friday in the contract month
  Expiration date	3rd Friday in the contract month. If there is no trading session on this day, expiration will occur on the immediately prior date on which there is a trading session
  Contract months	Even months
  Settlement on expiration	Cash Settlement

• Benefits
  • Instrument for hedge strategies against exposure to the real estate fund’s market.
  • Allow to replicate the index, without the need to have the cash and transaction costs of the spot market.
  • Using the correlation factor of real estate funds with the IFIX Futures, it is possible to hedge the portfolio against real estate funds’ volatility, even with quantities differently from the Index composition.
  • Allows arbitrage with the spot market.