Advantages of operating CEDEARs
Which are the most popular CEDEARs on the market?
Know the main stock CEDEARs by sectors
Advanced MicroDevices (AMD)
Coca Cola (KO)
Mc Donalds (MCD)
Meta Plataforms (META)
JP Morgan (JPM)
Coinbase Global (COIN)
Vista Oil (VIST)
Exxon Mobil (XOM)
General Electric (GE)
What are CEDEARs of ETFs?They are CEDEARs that replicate the behavior of the most important ETFs (Exchange Trade Funds) in the world. ETFs are investments similar to an Investment Fund, because they represent an asset basket, but are listed abroad.
Replicate Nasdaq 100 (index composed of 100 IT companies with the largest capital)
They are ETFs of active management and invest in companies (American or foreign) considered disruptive in innovation.
Replicate S&P 500 index, composed of 500 companies with the largest capitalization in the U.S.A.
Replicate Russell 2000 Index Fund (composed of stocks of small capitalization of the U.S.A.)
Replicate the performance of MSCI TR Emerging Market Index, composed of different companies of emerging markets.
Follow the Financial Select Sector Index that includes financial services companies.
Represent Energy Select Sector Index performance that is composed of energy companies of large capitalization.
Replicate Dow Jones Industrial Average Index that is composed of 30 stocks with the largest capitalization in the U.S.A.
Follow MSCI Brazil index that gathers the companies representing 85% of the Brazilian market.
A CEDEAR does not always equal one stock or one ETF that, for example, is listed on the NYSE. There are equivalence ratios when comparing local prices with their quotation in the market of origin. Let’s give some examples: one Apple stock (AAPL) on the Nasdaq is equivalent to 10 CEDEARs on the Buenos Aires Stock Exchange, while for SPY, this ratio is 20. In other words, 20 CEDEARs are equivalent to 1 SPY in the U.S.A.
From CEDEAR quotations, you can see each equivalence ratio of one stock or of ETFs feasible for trading.
The price of CEDEARs will depend not only on the evolution of the underlying asset (the foreign stock or ETF), but also on the movement of the “Contado con Liqui (CCL)”. Consequently, the evolution of the gap between CCL and the official rate of exchange is captured by the price of the certificate in pesos. Therefore, they are useful assets to dollarize portfolios.
Then, the risks of investing in CEDEARs are – logically – the same as investing in stocks or the underlying asset that make up the ETFs, as the case may be. In this way, risks derived from the company itself, the market in general, and the economic situation are identified. Whereas, in terms of risks inherent strictly to the local market, we must undoubtedly mention liquidity. The volume of business concentrated in these instruments is lower than that of local stocks, and although there are several CEDEARs listed, few of them enjoy recommendable liquidity. In this sense, it is important – when making a purchase decision – to take into account the last time you traded and the average daily transactions.