This month Itau AGF launched the first ETF (Exchange Traded Fund) in Chile, which replicates the IPSA and as every public negotiable instrument it is subject to be deposited with Depósito Central de Valores (DCV). Fernando Yañez, General Manager of this entity points out that “DCV is the entity in charge of the custody of all securities issued as well as to register all the transactions that are executed with them in the market.”

This ETF, named It Now! Ipsa was awarded to Itau AGF by the Santiago Stock Exchange last year.

Yañez remembers that “an ETF issuer has important operational work, which in this case Itau delegated to DCV and DCV Registros. In the daily operation of an ETF depositors shall execute contributions and withdrawals of securities that will create and eliminate quotas, all new activities which were requested of DCV. On the other hand, DCV Registros will be responsible for maintaining a daily update of the contributors of this instrument”.

Expectations for this new instrument

On the other hand, in relation to the expectations that there are with this new ETF, Fernando Yañez indicated that “conditions such as liquidity, ETF representation, and macroeconomic stability of the country make this an instrument with good future prospects. According to Itau in a two year term it is expected to have an amount of nearly 500 million dollars and with regular daily transactions”.

Finally, the General Manager pointed out that “ working with the technical and legal teams that implemented the operation of this new instrument in the market was a pleasant and fruitful experience; our infrastructure will be prepared to provide excellent service both to the issuers and the participants who invest in this EFT.”

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