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Yesterday a new investment debuted in the Argentine capital market. These are the nine ETF Cedears (exchanges trade funds, in English), a tool that allows you to operate from Argentina, in pesos, in the most important international indices in the world.

In their first round of operations, these instruments managed to negotiate $1,757 million. “The Cedars had an uptick in trading volume and reached levels not seen since early December, with a total balance of $4,181 million. Without a doubt, the driver of this rise was the successful exit of the nine ETF Cedears to the market, that as a whole took 42% of the total volume of operations”, observed from Personal Investment Portfolio.

It has several advantages for which it caught the attention of local investors. On the one hand, it is bought in pesos, but its variation is tied -in part- to the route made by the dollar counted with liquidation (CCL). On the other hand, it is a way to run from the Argentine risk and invest in the most important indices at a global level, such as the S&P 500 or the technological Nasdaq. It is even exempt from paying income tax.

“Before, to operate in these indices you had to open an account abroad, take the assets there, pay very high commissions. Now the minimum investment is $1600, for example, if you invest in ARKK (innovation fund). You no longer have to be a great investor to access, for $1600 you can buy the same as an American investor, is really thick”, said Ariel Sbdar, founder of Cocos Capital.

From IOL Inversiónronline they explained that ETFs are investment funds, but they have the particularity of being listed on the Stock Exchange. Its operation is the same as that of shares: they can be bought and sold throughout a stock wheel at the price existing at any time. In short, it is an intermediate instrument between traditional Mutual Funds (FCI) and shares.

“Yesterday, without a doubt, the star of the day in the Argentine market was the launch of the Cedears related to major ETFs in the US market, that the last few days gave investors a lot to talk about, due to the benefits of having a new tool to be able to diversify and reduce risk”, remarked Ayelén Romero, from Rava Bursátil.

The ETF that replicates the performance of the S&P500 (SPY) index, which brings together the most important companies in the United States, was the most chosen with 3,242 operations for a total of $867 million. Or, viewed another way, $4.1 million. “This is a very high number for our market and in Latin America. For example, the Mexican Stock Exchange also has $SPY and only traded US$2.3 million”, compared Sbdar.

In the list of the most traded, it was followed by the industrialist Dow Jones (DIA), which registered transactions for $288 million; the financial sector (XLF) for $287 million; the disruptive innovation fund (ARKK) with $135 million; the energy sector (XLE) with $71 million; the Nasdaq technology index (QQQ) with $53 million; the Brazilian fund (EWZ) with $34 million; Russel 2000, made up of small capitalization companies (IWM), with $12 million; and finally, the emerging markets (EEM) with $6.3 million.

“In the first round, $1,757 million were traded, which represented 35% of the total volume of local shares and Cedears as a whole. More than doubled the local volume of shares”, they added from Cohen.

ETF volume traded on Tuesday, according to BYMA.  Cohen's chart
ETF volume traded on Tuesday, according to BYMA. Cohen’s chart

“In reality, you can’t compare an Argentine stock to buying SPY, which is the most traded asset on the planet. Before, they had Argentine assets because there was no other option. Now, there will still be a small share, but the investor will lean towards foreign ETFs. Yesterday we matched up with the largest investors on the planet”, closed the founder of Cocos Capital.

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