Saturday , May 15 2021

The first Chilean bond ETF is created and encourages this type of investment.



This product took effect on Wednesday, January 30th and uses the RiskAmerica Corporate Fluidity Lite index as benchmark. Compared to the 8.25% retracement that Ipsa accumulated in the same period in 2018, the index leased 5.4%.

Singular AM, a fund manager, predicted that investors would be interested in local corporate bonds even in scenarios of regional interest rate hikes. So they launched a fund traded on the ETF Singular Chile Corporativo, which is the first company to consist only of local debt instruments.

This product took effect on Wednesday, January 30th and uses the RiskAmerica Corporate Fluidity Lite index as benchmark. Compared to the 8.25% retracement that Ipsa accumulated in the same period in 2018, the index leased 5.4%.

And while interest rates are very low due to geopolitical contingencies and uncertainties in global macroeconomic scenarios, investment alternatives to bonds ended last year.

In the ETF's investment policy, the Fund may bet on banks, corporate bonds and securities issued by a Chilean entity that is in the RiskAmerica Index or belongs to entities holding other types of bonds in this category. The Singular is sent to the Financial Markets Commission (CMF) A report issued by the Treasury or the Central Bank in accordance with

Singular's financial analyst Diego Chomali said: "We are confident that ETFs will be an important part of the regional portfolio and we look at the case in the US There are about 2,270 ETFs in the northern countries, of which more than 385 are fixed-income dedicated equipment And $ 63.9 billion in assets under management.

In the Chilean market there is an advantage in choosing debt instruments at the time of investment, but no ETF dedicated to replicating 100% of local bonds. Previously, other attempts to track fixed earnings were already recorded. In 2006, LarraínVial launched a mutual fund LVACL to mimic the LVA fixed income index. The product did not last long because the tool had very little fluidity.

AGF hoped to avoid profitability estimates for the first year of ETFs, but they are confident in the performance of their products. And that's more: Singular plans to launch an ETF in the local market to reproduce the international stock index in February. Called the FTSE Global All Cap index, this product reflects around 8,000 weekly performance worldwide.


Source link