The National Securities Commission (CNV) enabled the creation of Cedears ETF that will follow the price of purchasing virtual assets and raw materials. It was known through an extensive regulation that was published in the Official Gazette this Wednesday.
In particular, the regulations allow three investment options:
- In ETFs that passively replicate widely disseminated indices on equities, virtual assets or raw materials.
- In international assets without the 25% limit.
- In local assetsexpanding the limits of diversification.
The last two options will be aimed only at qualified investorswhile the first two can only be subscribed in foreign currency deposited abroad. In addition, the creation of Cedears ETFs that meet the requirements indicated in the first option is authorized.
Therefore, from now on, the public offering of foreign investment funds, including those that back Argentine Certificates of Deposit (Cedears), must be carried out through FCIs constituted and registered in Argentina. This means that Argentine investors who wish to access these funds must do so through local investment vehicles, subject to stricter regulation.
“The National Securities Commission updated its regulations, which opens the door for local investors to access a greater variety of instruments, purchaseable from Argentina in pesos or dollars“, they explained from Balanz.
How to invest in Cedears
To invest in a Cedear it is necessary have an active client account that allows operating in the capital market. It is possible to add one to the one we already have in a bank or create a new one through a brokerage company, as long as it is officially listed on the market.
For Christian Reos, Research Manager at Allaria Ledesma, he believes that using Cedear allows “exposure to regions that are totally different from what the Argentine economy is” and highlights that ““In this way, a small investor can invest and diversify his portfolio as a large investor would.”. “The attractiveness of Cedear is that with pesos you can invest in world-class companies and are protected by the dollar,” remarks Paulino Seoane, Mr. Sales & Trader at Balanz.
When choosing a Cedear lThe decision involves, as with any action, detecting which sectors are promising based on global variables and the country in which the investment is made.. When choosing a Cedear, the decision involves, as with any action, detecting which sectors are promising based on global variables and the country in which the investment is made.
On the other hand, It is important to take into account the evolution of the exchange rate, because this investment will imply a way to hedge in hard currency against exchange riskwhich is high in our country.
Source: Ambito
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