Yield: how to invest in ETF can attract investments and strengthen the local market

The novelty on the closure of last week was that, through Resolution No. 21577, the CNV authorized that they are issued in the local market yielded in nine ETFs. Es decir, a partir de ahora el inversor local podrá invertir en índices accionarios americanos, así como índices sectoriales de EEUU.

The possibility of investing in ETF from Brazil and emerging are also added.In total there are 9 indices that the local investor can buy from the Argentine stock market and in pesos.

Para tener un panorama más claro sobre la novedad, El Cronista conversó con Gonzalo Pascual Merlo, gerente de mercados de ByMA quien remarcó que el surgimiento de los nuevos Cedear juega a favor de la construcción del mercado local para mantener dentro del país la inversión en pesos.

-The broadcast of nine yields was approved.What are more specifically?

-To ETF of US and emerging shares. Concretamente, son el ETF del S&P 500 (SPY), del Nasdaq 100 (QQQ), del Dow Jones y del Russell 2000 (IWM).There will also be sectorals such as the financial sector (XLF) the energy (XLE), and Ark Innovation (Arkk).The list also includes ETF from Brazil (EWZ) and emerging (EEM).

-An broad sectors of the American and global shareholding market...

-We think it is an optimized list since we understand that they are very interesting vehicles and that they will point to the local investor can take advantage of those assets.This was the opportunity to advance in the Cedears market since we have a much more mature market, with three market markets that provide liquidity without a problem and with a very high degree of conditions that we impose.

-When will you be operational?

-The product was not launched.The instruments are registered in the Securities Box but are not enabled for the negotiation yet.We had a CNV approval, which was conditioned to complete certain formal requirements and that we have been working.We are still in an internal testing process to be able to arrive in optimal conditions of the launch, which is not yet defined.It will be able to operate in the short term.We are adjusting details so that negotiation, cancellation and liquidation function as efficient as possible.

-Will new ETFs come from this launch?

-Our expectation is being able to add more options.We are in a first stage in which we want to focus on what we have and consolidate the work that has been done in yielding so that this is another step, and consolidate well the negotiation of these nine new yield.Once we have achieved an incremental volume and once that goal is completed, it will be a starting point to bring more products to the local market.In that case, we must speak and work with CNV to continue building in what we have been working on

-Are you going to remove volume from the rest of the yields?

-We don't think this launch of the new ETFs will go to detriment in the current yield.That is not our intention.We want there to be a good range of products to give more asset offer to customers.There will be a flow that is in yield today that migrates to the new ETFs.It is something we contemplate and expect.

-And are you going to compete against Argentine actions?

-I don't think he plays against local actions since it is different types of exhibitions and I don't think he will play one to the detriment of the other.They are not independent, but I think they offer a different type of risk and therefore, the flow will be moved based on the expectations that the investor has for each class of asset and risk.

-There of every $ 10 invested in shares, $ 6 are going to yield.Is this ratio to be deepened?

-We will see a deepening of the ratio not only because the current ones will migrate to the yield but because we have the expectation that we will see an increase of new investors in the capital market.

-Do you come to operate derivatives about these ETFs?

-Yes.We are enabling options and deadline for these ETFs, which implies that a universe of options for the public with the highest degree of knowledge opens.

-Isn't the market exported by offering assets related to global variables than local?

-Nope.And it's a resounding.We do not believe that we are exporting the market but quite the opposite.We are importing it.That is, local investors are not going from the country, but we are giving them options to remain locally and invest in pesos and so that, if at any time they change their appetite of risk and seek local risk, it is simply to sell aproduct and buy the other, with the liquidation results in the same market.We believe that this plays in favor of the construction of the local market to keep investment in pesos within the country.I think we are importing products and that is good to have more options.

-Do you go to add new Market Makers from these new ETF yield?

-To we have three Market Makers of Cedear and our intention is that these new ETFs have Market Makers.In principle they will be the same as they are already.We believe that with all three we cover well the need for the provision of liquidity within what they are yielding.To ensure liquidity in the first stage of the process of these new ETFs we will work with three per product and then move on to only two in each of the ETFs.

-¿Cómo se llegó a este logro?

-The process is something that comes a while ago.We were lucky to work with CNV to structure this launch.It was a need for investors for a couple of years and it was what we worked together with the CNV.There were multiple factors to take into account such as how to make the selection correct, that the process was efficient and that we could meet the need for investors.That is, to bring investors an attractive product but at the same time that it is an instrument for everyone.

-And what is the expectation from Byma from the launch?

-Our expectation is not only to bring a product that can give more services to current investors, but we hope that this attracts new savers and that they are not yet investors in the market.We seek that this pushes new camper accounts to open since local savers will assemble a diversified portfolio of shares, at a low cost and with many efficiencies added throughout the structure of how it is issued, thanks to the fact that we haveA Box of Securities as Issuer.

-What does the fact that Box of Securities be the issuer mean for the investor?

-Our idea is to offer a good variety of products to favor different types of investors.We try to do it as efficient as possible and there, a box of values takes a fundamental role in enhancing the process.Box emits yielding is easier, automatic and more efficient.CNV collaboration helped a lot that accompanied the process a lot.