American investment manager VanEck has launched its first Peruvian-listed Exchange Traded Fund, dubbed Fondo Bursátil VanEck El Dorado Perú ETF (ETFPERUD).

The move further expands VanEck’s presence in the Latin American marketplace and bolsters its global product lineup.

VanEck International ETF sales director Eduardo Escario said: “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.

“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.”

VanEck launched ETFPERUD, which trades on the Lima Stock Exchange (BVL), in partnership with Peru-based asset manager El Dorado Asset Management.

Escario added: “Partnering with an experienced local manager was an important facet of our product development efforts as we set about to bring ETFPERUD to market.

“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.”

ETFPERUD looks to track, before fees and expenses, the price and yield performance of the S&P/BVL Peru Select 20% Capped Index.

This index is designed to calculate the performance of the largest, most-liquid companies trading on the Lima Stock Exchange, with a 20% cap on individual stock weights.

It uses a capped market cap weighting, with a 20% stock cap at rebalancing to minimise concentration and enhance diversification. It is rebalanced annually.

El Dorado Asset Management CEO Melvin Escudero said: “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.”

VanEck has offices and fund lineups in Europe, Australia, Singapore, and China.

In 2018, the firm unveiled a new ETF that targets long-term returns by offering exposure to real assets and at the same time mitigating downside risk.