The superintendent of the Stock Market, Juan Pichihua, emphasized that these securities are guaranteed by the Public Treasury.

The Peruvian sovereign bond ETF will be launched in the coming weeks to boost access for more Peruvians with limited resources to invest in the local stock market, Juan Pichihua, superintendent of the Stock Market, announced today.

"An ETF for a package of sovereign bonds will be launched in the coming weeks, allowing even the most marginal Peruvian to access and invest in these ETFs," he told a local media outlet.

Exchange-traded funds, or ETFs, are financial instruments consisting of a basket of securities (stocks, bonds, or other assets) with exposure to various sectors and/or regions, managed by expert managers. These funds are listed on the major stock exchanges and track a stock market index, explains the Lima Stock Exchange (BVL).

ETFs are also characterized by their generally high diversification, flexibility, and simplicity, and their associated costs are typically lower than those of investment funds. They are constantly listed on the market like a stock. This allows investors to buy and sell shares at any time, according to the BVL (Stock Exchange).

In the case of Peruvian sovereign bond ETFs, the superintendent of the Stock Market, Juan Pichihua, emphasized that these securities are guaranteed by the Public Treasury.

He noted that mutual funds also allow more Peruvians access to investing in securities, attracting funds from small savers through public offerings so they can later become investors, taking on risk with a greater potential for return.

"In the case of ETFs, what we're going to have is a financial asset guaranteed by the Treasury, the sovereign," stated the head of the Securities Market Superintendency (SMV).

"Now a new wave of ETF issuance is beginning. The Ministry of Economy and Finance, with the advice of the World Bank, is launching a new program. This way, small savers can become small investors with a secure return," he explained.

He indicated that investing in Peruvian bond ETFs is safer than investing in other fixed- or variable-income securities because the likelihood of the government going bankrupt is minimal.

On the other hand, the head of the SMV stated that the local stock market is very small because securities issuance in Peru represents only half a point of the Gross Domestic Product (GDP), while in Chile it represents five points of its GDP.

Regarding stock market capitalization, he noted that in Peru the ratio is 70% of GDP, while in Chile it is over 180% of GDP.