VanEck expands global product lineup with launch of new ETF in Peru
VanEck, a leader in global investment management, has launched the Fondo Bursátil VanEck El Dorado Perú ETF (ETFPERUD), the firm’s first Peruvian-listed Exchange Traded Fund.
“Peru has a vibrant and fast-growing public equity market, but to this point gaining access to the largest and most liquid stocks in-market via a single point of entry has not been possible,” says Eduardo Escario, Director, International ETF Sales with VanEck. “This was despite the fact that Peru and many other countries in Latin America have pension funds and other large institutions that could benefit from a vehicle such as this. With the launch of ETFPERUD, we’re very pleased to be capturing such an important and emerging market while simultaneously solving a significant issue for investors.”
ETFPERUD trades on the Lima Stock Exchange (BVL) and was launched in partnership with El Dorado Asset Management, a Peruvian asset manager focused on institutional investors that provides innovative products and exposures.
“Partnering with an experienced local manager was an important facet of our product development efforts as we set about to bring ETFPERUD to market,” continues Eduardo Escario. “We’re very excited to be working with them on this initiative and in supporting them as we bring our experience in the ETF industry to Peru for the first time.”
“The number of Latin American investors is positioned to grow significantly over the next decade, and providing them with important tools so they can invest in their own markets and those of neighbouring countries is an important initiative for us and a key means through which additional liquidity can be introduced to these markets themselves,” adds Escario.
El Dorado Asset Management CEO, Melvin Escudero, says: “we’re very happy with this partnership with VanEck that will bring to the Latam markets and investors a new ETF with top quality in operations and investments management backed by a leading global ETF manager in emerging markets and commodities. The opportunity of Peru, a mining country (very relevant in the production of gold, silver and copper) that is one of the fastest growing countries in the emerging markets, looks very attractive specially with the actual positive new commodities up trending cycle. Additionally, the ETF market in Latam has a huge potential for growth and looks like Asian markets 15 years ago with young population, fast growing economies and increasing incoming flows of global investors.”
ETFPERUD seeks to track, before fees and expenses, the price and yield performance of the S&P/BVL Peru Select 20 per cent Capped Index (PBLSCUT), an Index designed to measure the performance of the largest, most-liquid companies trading on the Lima Stock Exchange, with a 20 per cent cap on individual stock weights. The Index uses a capped market cap weighting, with a 20 per cent stock cap at rebalancing to reduce concentration and improve diversification. The Index is rebalanced annually.
Perú joins a growing list of markets where VanEck is building a significant presence and product lineup for investors, which also includes the firm’s offices and fund lineups in Europe, Australia, Singapore, and China.