The National Securities Commission (CNV) announced that it will allow the establishment of Cedears of ETFs to be listed on the local market. This is a great novelty for investors to channel pesos towards the main indices (of shares or sector) in the world.
The market for corporate licenses has taken on an incredibly important dynamism in the last three years. For those investors who were looking to invest in assets free of Argentine risk, they found in the cedears the opportunity to invest in the main companies in the world without the need to have an account with a foreign broker.
Thus, according to Argentine Capital Market Institute (IAMC), the year 2021 closed with an astonishing statistic: $ 7 out of every $ 10 that are traded in the local equity segment are aimed at cedears. The remaining 3 pesos go to shares of Argentine companies.
The glass half empty of the above is that the lack of interest in local assets is a consequence of the great economic instability that Argentina has suffered for several years. Meanwhile, the glass is half full is that investors have found in the cedears the opportunity to invest diversified and protect their savings.
A) Yes, In our vision from Inviu we celebrate the decision of the CNV since it allows us to expand the offer of products available to investors in Argentina.
Specifically, 9 ETFs will be enabled, namely:
- SPDR S&P 500 ETF (SPY)
- Invesco Nasdaq 100 ETF (QQQ)
- iShares Russell 2000 ETF (IWM)
- iShares MSCI Emerging Markets ETF (EEM)
- Financial Select Sector SPDR (XLF)
- Energy Select Sector SPDR (XLE)
- SPDR Dow Jones Industrial Average ETF (DIA)
- iShares MSCI Brazil ETF (EWZ)
- ARK Innovation ETF Equity (ARKK)
In this way, a greater offer is always welcome from the investor’s point of view, especially in this context of significant uncertainty about Argentina and that has an impact on domestic assets.
Undoubtedly, the challenge for the future will be that the next wave of increase in the supply of financial assets for investors will be from Argentine companies, since this will imply that the country has found a more predictable course for the future.
Head de Research & Strategy en Inviu.
Source From: Ambito
