Politics aside, Chile’s retirement system spells opportunity for ETF issuers. On Monday, WisdomTree (NasdaqGM: WETF), the fifth-largest U.S. ETF issuer, announced the Comision Clasificadora de Riesgo (CCR), the Chilean pension funds investment regulator, approved three additional WisdomTree ETFs for sale to Chilean pension funds.
Chileans saving for retirement can now invest in the WisdomTree SmallCap Earnings Fund (NYSEArca: EES), the WisdomTree MidCap Earnings Fund (NYSEArca: EZM) and the WisdomTree Japan SmallCap Dividend Fund (NYSEArca: DFJ). That brings the number of WisdomTree ETFs available to Chilean pensioners to 13.
“Chile’s $163 billion pension pool is particularly attractive to U.S. ETF providers, because it is large, well established and allows a significant percentage of foreign investments. Workers there are required to contribute 10 percent of their monthly earnings to their individual accounts directed by pension managers,” reports Ashley Lau for Reuters.
Other ETF issuers with eyes on Chile as well as other LatAm America’s include BlackRock’s (NYSE: BLK) iShares, State Street’s (NYSE: STT) State Street Global Advisors and Vanguard, the three largest U.S. ETF issuers.