Brazilian ETF DIGY11 Puts 95% of Assets into Strategy's STRC Preferred Stock
A new ETF called DIGY11 is set to launch on Brazil's B3 exchange in early September, and it will have an unusually high allocation of 95% to Strategy's STRC preferred stock. The remaining 5% will go into Strive's SATA preferred stock.
DIGY11 aims to track the MarketVector Bitcoin Treasury Preferred Equity BRL Hedged Index and is expected to generate monthly distributions in Brazilian reais, targeting a yield around CDI plus 3-5 percentage points annually.
The fund's structure means that it will be heavily exposed to Strategy's preferred-stock market, which could pose risks for investors. STRC's dividend rate can be adjusted by Strategy to keep the shares near their $100 stated amount, and changes in this rate could significantly impact the ETF's performance.