Itaú Asset Management has launched the first Chile-domiciled exchange traded fund to be listed in Santiago Stock Exchange.
The new ETF will charge a fee of 50 basis points or 0.50 % per year, compared to the 4% annual payment made local mutual funds.
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With this fund, the local investors will be able to get diversified exposure to the Chilean market, and will give the opportunity for institutional money to be invested in stocks with aggregate exposure and not sit in cash.
According to the general manager of Itaú Asset Management in Chile, Wagner Guida, this ETF will facilitate the implementation of investment strategies that seek exposure in the Chilean market.
"This tool offers a number of advantages, such as access to a diversified portfolio of locations, with a liquid similar to any action and much lower cost mutual funds. Additionally, you receive the same tax treatment of shares that and provides investment is made without exposure to the dollar," Guida said.
ETFGI founding partner, Deborah Fuhr, said: "As a local fund, it will be more tax-efficient than using a US or European-domiciled ETF. Further, investors will not have to convert money into dollars or Euros to buy a foreign ETF to invest into a Chilean benchmark, so there is no foreign exchange risk."
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